Collect the Money before You Get F***ed

I was dated a girl from China after my first marriage. My friends ended up having a little debate among themselves on whether this potential relationship was any good for me. One of them said “What if she’s using you,” while another said, “after your marriage, I hope she’s using you.” The reason for this debate is simple – girls from China do not have a good reputation in Singapore. They are known for “using” their charms on old men and ensuring that recently received pension monies end financing China's economic growth. China girls, so the saying goes – look great as long as their pocket are filled. In the red-light district, they are most famous for asking for money before they even undress.

I bring up that anecdote of the China girls in the red-light district because it underscores one of the most forgotten points that people fail to ask in business – “When do I get paid?”

Whenever the topic of payment comes around, everyone is focused on the quantum. Everyone is interested in “How much” they get paid and nobody focuses on when they get paid. This is especially true for people who are employed. It’s understood that you get paid on a fixed date, it’s usually at the end of the month, though it’s not uncommon for workers lower down the food chain to get their pay on a fortnightly basis.

However, once an employee leaves the comfort of employment, he or she learns rapidly that the question of “when” is vital to survival. Bills need to be paid and suppliers don’t want to wait. Furthermore, entrepreneurs soon discover this thing called “Credit Terms,” when after completing a job or selling a product, you’re supposed to wait so many days for get paid.

I take the biggest supplier to my day job – the construction industry. In Singapore, everyone thinks of the construction industry as being exceedingly wealthy. We have images of “Phua Chu Kang,” a comic character of a construction contractor who is doing well. We think of the guys running the construction industry as spending their nights in karaoke lounges sipping overpriced brandy and enjoyed overpriced bar girls.

While there may be a certain truth in that stereotype, there is an untold story, which the good reason why this industry has kept me busy. Small subcontractors have to come out with cash to pay off certain portions of the project (Wages, levies, materials, machinery up-keep etc). Each portion of a project can take a matter of months of complete. Then, at the end of that particular period, the subcontractor has to submit a “progress claim,” which in lay man terms is something like a progress report. In main contractor, or the guy above in the food chain, then has the right to inspect the works done and then, if he’s not satisfied, impose “back-charges.” After that the main contractor then “certifies” how much he thinks the works and worth and the subcontractor then sends in an invoice, which takes about 60 plus days to get paid.

Admittedly there are certain safeguards such as a legal process for the main and sub-contractors to settle their disputes on pay. Then, as the scion of one group explained, “You’re looking at it from an outsiders view – as an insider we always find a ‘Godfather’ in the main contractors office to take care of us.” Yet, despite these “assurances” it’s clear that the odds don’t favour the small guy waiting to get paid. Power resides with the guy in the position to pay.

So, what can any aspiring entrepreneur do? The key is to remember what the Chinese working girl does – collect the money before you get fucked. Work on the principle that you’re going to get f**** in a job and so, you better to collect the money fast. It is better to have money from cash flow paying for a job instead of having to dig into your reserves. It’s also easier to tell someone to f*** off when you have money in the bank.  Chasing for money is a time-consuming process that requires resources. Going through a legal system to get what is due to you is resource draining.

When you think about all these things during the course of a business day, don’t get snooty about bitchy China Girls who screw people for money. Instead, appreciate the wisdom they have gained from pounding the streets and learning life’s harsh realities. Don’t wait to get paid after you’ve been f***ed.