Payment dependent on contracting company receiving payment first

[LondonManc]

A few years ago, I jumped on a new contract close to home after being on the bench for a while, quickly running out of cash.

The project was ill advised, the client was useless and things were going south quickly - and then I submitted my invoice for the first months work and was told to check my contract terms (I hadn't properly - big lesson there) that I wasn't going to be paid until the company i was contracted to (a small IT shop, never again) was paid themselves.

The end client would not pay their invoices on time, and started refusing to pay for anything till problems with the project were rectified (not my fault) so I ended up getting increasingly stressed worrying about money and the direction of the project.

I'll NEVER work for small IT shops, or for anyone who won't pay you until they get paid, again. Neither should you.

I'd agree with that for brand new clients for companies. Those with a longer standing relationship with clientco tend to be fine - I've had it where, say, you do February's work, invoice consultancy co for it, they get paid at the start of March and you get paid the day after it hits their account. It's generally six weeks from the end of the month that you get paid, but that's how many businesses operate. If you're running a business, you've got to accept terms like that at times but, as you hint at, you must consider how much risk you're exposed to.