Payment terms

[firehawk]

is there a reason why an agency cannot give you (through your LTD company) payments by week rather than 28 days?
I know you can get weekly as I had a contract very recently (and before then) which do weekly. (so I can submit invoice this week and get paid next week)

What legal/technical points do I have that I can stand with? After all, they are a million pound agency so irrespective of the agreement they have with their client, there is no reason for the agency to not pay on weekly basis to their contractors on request right?

[TykeMerc]

is there a reason why an agency cannot give you (through your LTD company) payments by week rather than 28 days?
I know you can get weekly as I had a contract very recently (and before then) which do weekly. (so I can submit invoice this week and get paid next week)

What legal/technical points do I have that I can stand with? After all, they are a million pound agency so irrespective of the agreement they have with their client, there is no reason for the agency to not pay on weekly basis to their contractors on request right?

What does the contract you agreed to say? Odds are the agency is paying to contracted terms and they have no obligation or motivation to pay you earlier. If you agreed to a 4 week payment schedule you haven't a leg to stand on.

Payment terms are negotiable, but only when the contract is being agreed or renewed.

[pmeswani]

is there a reason why an agency cannot give you (through your LTD company) payments by week rather than 28 days?
I know you can get weekly as I had a contract very recently (and before then) which do weekly. (so I can submit invoice this week and get paid next week)

What legal/technical points do I have that I can stand with? After all, they are a million pound agency so irrespective of the agreement they have with their client, there is no reason for the agency to not pay on weekly basis to their contractors on request right?

Do a credit check against the agency to see what financial standing they are in. If they are in good financial standing, tell them what your maximum payment notice is. If they can't meet it, tell them that you are turning down the contract. Some people would contact the client to apologise for not accepting the contract due to issues with the contract/agency. That is your choice if you wish to contact the client.

[firehawk]

Thanks

nothing has been signed! I got an offer...and I accepted verbally but not signed anything. but now its the negotiating terms that are under way right now.

they said the client pays the agency 45 days. the agency pays contractors 28 days - which is fair enough but still no reason for not asking the agency to pay weekly since after all they are a big agency (£££)

[SueEllen]

is there a reason why an agency cannot give you (through your LTD company) payments by week rather than 28 days?

Because it's more work for them for their invoicing department/themselves to process invoices weekly and you agreed in your contract to wait 28 days or whatever.

Remember some clients don't pay the agency for up to 90 days after you have invoiced them.

[firehawk]

Because it's more work for them for their invoicing department/themselves to process invoices weekly and you agreed in your contract to wait 28 days or whatever.

Remember some clients don't pay the agency for up to 90 days after you have invoiced them.

Thanks Ellen. I didn't agree anything - no contract yet, no papers.... but offer has been given and I am negotiating.

it is a big agency so they have more than enough funds to do weekly. its not like all contracts all of a sudden are requesting weekly payments

[SueEllen]

Thanks

nothing has been signed! I got an offer...and I accepted verbally but not signed anything. but now its the negotiating terms that are under way right now.

they said the client pays the agency 45 days. the agency pays contractors 28 days - which is fair enough but still no reason for not asking the agency to pay weekly since after all they are a big agency (£££)

They pay you every 28 days, or you invoice them and have to wait 28 days for payment?

If it's the former and their financial situation looks good from credit checking them, googling them, companies house records etc then I would worry about other tulip clauses in the contract rather than this.

If it's the latter then negotiate a shorter payment schedule.

[firehawk]

Thanks Sue, this is good stuff to know/learn.

I apperently need to invoice them every week through their online timesheet system. The manager then approves it every week (and if he delays the approval then has a knock on effect on the payment too!) and thats how its done.

The company is RealStaffing (AKA Pathway Resourcing). They are under a bigger company called S3 (which 2 other big agencies fall under ... Computer Futures and Progressive)

[EasyTyler]

it is a big agency so they have more than enough funds to do weekly. its not like all contracts all of a sudden are requesting weekly payments

Good luck! I'm sure you're worth it but as you can appreciate what's their motivation for changing their standard way of engaging, just for you?

Plus - bigger companies need more leverage to change their ways.... "It's the way it's always been"

[firehawk]

Thanks. look at it this way, they need money and they are almost securing a contract...they should do what they can to make it happen right? Thats what negotiation is all about.