Payment Culture in the Creative Industry: A Call for Balanced and Fair Exchange

SHARE

When Delayed Payments Become Industry Norm

The creative industry in Australia is quietly bleeding under the weight of delayed payments. What’s often labelled as “standard” or “best practice” is, in truth, a cover for a power imbalance.

Micro and small businesses including photography studios, filmmakers, designers, producers, and freelancers are routinely expected to absorb the cash flow delays of clients far larger and better resourced than them.

This is exploitation dressed up as “industry standard.”

The Australian Government’s Statutory Review of the Payment Times Reporting Act 2020 (June 2023) confirms what small suppliers already live: large businesses use smaller ones as cheap finance. Payment terms of 30 days are locked into inflexible contracts and enforced via sluggish internal systems. These practices persist not because they’re efficient, but because they’re convenient for those in power.

It’s Not About “Industry Standard”, It’s About Power

In our agency relationships, the common excuse is: “We can’t pay you until we’re paid.” That’s poor cash flow management. You ordered the work. The work was delivered. Pay on time. Improve your systems, your competitors are.

In our direct-to-client relationships, our payment terms are often plainly ignored. When we follow up, the usual excuse is: “We only do payment runs twice a month.” That’s not a policy. It’s blatant disrespect. We should not have to chase you, let alone beg, to be paid.

Even more unethical is the rising trend of post-acceptance negotiation, where payment, copyright, or licencing terms are changed after an estimate/ quote has been approved. We hear “if you can’t do it, then we’ll need to find someone who will”. This isn’t a negotiation. It’s coercion. And it reflects a deeper problem: creatives are too often treated as disposable.

We treat our clients with civility and respect, and expect the same in return. In balance.

The Real Cost of Late Payments

To be clear, we’re not talking about late payments. We can all agree that late payments are wrong on every level.

This is about payment terms where the work is done now, and paid for later.

The issue is not about money. It is about value we provide, and our client’s values.

There’s little financial upside to elongating your payment terms. It creates enormous downstream damage. It forces small suppliers to increase fees next time to cover cash flow funding costs. Some will blacklist you as a slow payer. Others deprioritise your work. Trust collapses. Resentment builds. Creative capacity shrinks. Risk aversion rises. Innovation slows. Growth is stifled in one of Australia’s most vibrant sectors.

All of this happens silently, in the background, while procurement teams talk about “process.” Let’s not pretend this is neutral. Delayed payments damage businesses, relationships, and entire sectors.

Screenshot of Sum Effect estimate terms outlining fair exchange and payment culture expectations for creative industry projects.

A Global Shift Towards Ethical Payment Practice

Other markets are moving. In the UK, the Good Business Pays initiative tracks and rewards fast payers. The top ten businesses all pay within 5–11 days. In Europe, Net 7 is becoming a default standard for SMEs and creative collectives; not an aspiration.

Why? Because fast payment is cultural. It’s a leadership decision. It signals respect, ethical intent, and commercial maturity. It keeps the supply chain strong.

Australia’s contrast is sharp. Most Boards don’t even have payment culture on the governance agenda. It should be.

Our Story: What Balance Looks Like

We run a project-based business. There is no safety net. We operate on a cash-in, cash-out basis. It’s in our DNA.

I’m a farmer’s son. I grew up with the reality of harvests and hand-to-mouth planning. The default DNA is not to borrow beyond our means, stay in balance, do the work, get paid. Since opening in 2009, honesty, integrity in the handshake and healthy cash flow have been our strengths.

When COVID hit end of 2019, that balance was tested. Annual contracts vanished. Clients froze spending. We endured two waves of redundancies which were painful, destabilising, and deeply personal. During that time, we fell behind on payments. That was one of the hardest chapters of my business life.

In 2021, we worked with Grant Thornton Australia under their small business restructure program and managed to avoid bankruptcy. Emerging with clarity, courage, and a strengthened position.

We now walk away from projects where the power dynamics are off. We’ve learned to spot the red flags. We’ve learned that staying in balance is more important than saying yes.

We Won’t Betray Ourselves for a Brief

This industry is built on trust. If we betray that trust, or ourselves, it ripples through the entire business. We’ve learned this the hard way. So we choose a balance of power. Every project must feel fair from start to finish.

We also know that some clients aren’t ready to lead change. That’s fine. But we’re using our voice for those who are.

The culture around payment, copyright, and licencing terms in Australia is broken. There is no “industry standard” worth defending. If you’ve survived the last five years with a camera in hand, you know it’s true.

Our terms reflect our values. Fair exchange. Balanced partnerships. That’s how we do business.

What We’re Calling For

To shift the culture, we need a shared standard of what fair looks like.

Here’s what we ask for:

  • Standard: Advance payment to initiate, balance prior to delivery
    We work fast. Final delivery should follow final payment.
  • Worst case: Net 7 terms
    For small suppliers, seven days from invoice is the outer limit. No exceptions.
  • No delays behind internal approvals
    Invoice equals delivery. Approvals are your job, not our problem.
  • Prompt payment as ethical standard
    Your small suppliers are not your line of credit. If you ordered the work, pay for it.
  • Public recognition for fast payers
    Let’s reward leadership. We need an Australian version of the UK’s Fast Payer Awards.
  • Procurement transparency
    Declare your payment terms upfront. If they’re unfair, be prepared to talk or we’ll walk. You should expect that.

Our Position

We are a micro business. We pay our own freelancers and suppliers in 0–7 days. That’s our standard. That’s our expectation.

That’s also how it works when we pick up rental equipment, hire a car, take out insurance, replace equipment, buy hard drives to store that project, subscribe to a software program.

We don’t sign service contracts or Purchase Orders (POs) that embed unfair terms, especially related to copyright, licencing and payment. We follow ACCC guidance on small business protections. When we deliver the work, we expect to be paid.

This is about professionalism, trust, and mutual respect. It’s about ensuring that small, highly skilled creative businesses can survive and thrive. Where there is an equally shared balance of power and fair behaviour becomes the norm.

We applaud agencies who work with us in this way:

  • ChangeMakers Media & PR
  • Elevencom
  • Lateral Aspect
  • Propeller Brands
  • Resource Communications
  • Two From Two
  • Wahoo Advertising

We applaud companies who work with us in this way:

  • Allied Dental
  • Bon Charge
  • Centre for Offshore Foundation Systems
  • Centre for Prosthodontics
  • D’Orsogna Smallgoods
  • Heidelberg Materials Australia
  • Kailis Jewellery
  • Liberator
  • Linear
  • Nina’s Jewellery
  • Sodashi Skincare
  • St Barbara Limited

Final Word: Leadership Required

To every agency, brand, and business engaging creative suppliers:

Step up.
Look at your payment culture. Speak to your finance team. Fix what’s broken.

Boards, CEOs, and CFOs, ask yourselves:
What signal are we sending?

Pay fast. Pay fair.
Keep the exchange in balance.

It’s the right thing to do.

References

 

Picture of Matt Reed

Matt Reed

Commercial Photographer & Filmmaker at Sum Effect. With over 20 years behind the camera and 5,000+ shoots, Matt thrives in any environment, whether on location or in the studio. He’s travelled extensively, capturing striking images in unexpected places. His Perth-based studio sits near the beach, just a short distance from his go-to toastie and taco spots. Connect with him on LinkedIn.

About Sum Effect

 

We’re a commercial photography, video, and filmmaking studio based in Perth, Western Australia, creating visual assets that help people to feel proud walk tall, and brands to leave a positive imprint.

More practical strategies, tips and insights

Lets's Talk
Lets's Talk
error: © Copyright Sum Effect