Agency margins

[oaksoft]

Re: .

Nope.

The agency charge a margin to compensate for invoice factoring (a risky business) and NOT for introductions or they'd charge their clients a single fixed fee in the same way as they do for permy placements.

Just a quick reality check.

Would you effectively lend a contractor £1000 today with the prospect of picking up £1050 from the client 3 months later?
Would you consider the huge risk worth it for just £50 ?

That, in effect, is what the agency is having to do. I wouldn't touch it with a bargepole.

[NOTiFY]

Spring are taking 11% from me for past 10 months.

Haven't heard of 30% since Computer People in the late 70s!

[Liddle Feesh]

Invoice Factoring

What agencies do this? No agency I've ever used works asynchronously as you suggest.

They wait until the client has paid, and then they pay - usually themselves to a 2 or 4 week cycle (when they are earning interest from my money)...

Perhaps the bigger agencies do this. But then, as far as I am aware they also pay monthly and charge larger margins.

I'm not sure I fully comprehend your arguement.

[oaksoft]

Re: Invoice Factoring

I'm assuming LiddleFeesh is responding to me but the single threadedness of these boards couldn't make that less clear

I'm not sure I follow you but I'll list these points:-

1)If you invoice the agency for a weeks work and they pay you within 2-4 weeks then they are absolutely not waiting to be paid first because clients don't pay up this quickly.

2)Do you have proof that they are waiting for payment first or are you guessing?

3)If you are one of those contractors who store up 4+ weeks of timesheets and then expect payment within 7 days then with all due respect you deserve to wait until the client pays the agency.

4)Most businesses operate min 30 days payment terms and why contractors should be paid within 7 is a bit of a mystery. Mind you I wasn't complaining when it was me enjoying that sort of turnaround.

At the end of the day the agency cannot withhold payment from you until the client pays them UNLESS IT IS STATED IN YOUR CONTRACT. You did read that contract carefully I expect? Most don't and just sign on the line.

[tim123]

Re: Invoice Factoring

"If you are one of those contractors who store up 4+ weeks of timesheets and then expect payment within 7 days then with all due respect you deserve to wait until the client pays the agency."

Eh?

In 20 years of contracting I have only once worked with an agency that allowed me to invoice weekly. All the rest required monthy (or 4/5 weekly). OK so weekly was probably negotiable if I tried hard, but life is too short and ICBA. But I don't see why I should suffer waiting for the client to pay just because I meakly accept monthly invoicing. Sometimes (like the current contract) monthly invoicing is mandated by the client's system which only gives me a signed piece of paper to invoice with, at month end.

tim