GM Stops Paying Advances for Photo Shoots

© Jerry Avenaim

General Motors has stopped paying advances to photographers who shoot its ads, according to a photographer who has done work for the car maker.

GM (through its ad agencies) has asked photographers to officially accept or reject a set of new payment terms. The new terms say GM will "typically" pay ad agencies within 60 to 75 days of an invoice, who will then pay the photographer (or "vendor"):

"VENDOR UNDERSTANDS THAT IT WILL BE PAID ON A SEQUENTIAL LIABILITY BASIS (AGENCY SHALL PAY VENDOR ONCE PAID BY GENERAL MOTORS) PURSUANT TO GENERAL MOTORS' STANDARD PAYMENT TERMS AND THAT GENERAL MOTORS WILL TYPICALLY PAY AGENCY WITHIN 60-75 DAYS, PROVIDED VENDOR HAS SUBMITTED A PROPER INVOICE."

The photographer who provided these details (on condition of anonymity) says some GM photos shoots pay $200,000 to $300,000, so the lack of an advance and a two-and-a-half month delay of payment is a big deal.

PDNPulse: GM Stops Paying Advances for Photo Shoots.