Doing due dil on an agent

[MrWebDev]

I'm currently interviewing for a few roles and speaking to recruiters etc. I'm trying to get better at checking these agencies that are getting in touch with me, before deciding if I should do business with them (especially as a fellow contractor recently got shafted after their agent went into administration). I generally use companycheck.co.uk to lookup the agent and the directors, however I wondered if there was anything that you guys believe that we should look out for in particular? I'm also aware that companies house is now also free and have used that in the past too.

Things that generally stand out to me are lots of changes in directors, multiple outstanding debts, very low cash and profit (I would think this also suggest low turnover/cash flow?), cash in the minuses, losses, annually decreasing amounts and more liabilities than assets (presumably if they did go bust their assets would not cover their liabilities resulting in not everyone getting paid back?).

One particular example that I have also been looking at is Global Resourcing Ltd. (On a side note has anyone had any dealings with them here). I've been contacted by them for a number of roles, one of which seems particularly interesting. They been trading for a long time and have money in the low millions. However, they seemed to have changed directors a lot and also have multiple outstanding debts (One of which is to an individual amounting to £200K). Is this an example of a co. to stay away from, or are they actually fine?

N.B. I did search the forum via Google but didn't really find much

[malvolio]

If you're not comfortable with a company don't deal with it. It's rather your call what you think of as comfortable of course, and the agency business is highly volatile anyway but enough reserves to pay the immediate bills is an obvious one.

If you want a safety belt, IPSE+ membership bundles protection against agencies going bust up to a sensible limit. Along with a lot of other useful items...

[LondonManc]

There is a very simply way to reduce exposure if you secure the gig and are not comfortable with the agency's potential to pay.

Weekly pay, not paid when paid, job done. If you've got a signed timesheet from the client, then the client is prepared to pay your wedge plus the agent's. If they cannot pay you your part of that, they need to take a hit on invoice factoring to get you paid.

[FrontEnder]

There is a very simply way to reduce exposure if you secure the gig and are not comfortable with the agency's potential to pay.

Weekly pay, not paid when paid, job done. If you've got a signed timesheet from the client, then the client is prepared to pay your wedge plus the agent's. If they cannot pay you your part of that, they need to take a hit on invoice factoring to get you paid.

Have you ever managed to negotiate this with an agency that you've felt is a bit dodgy?

[MrWebDev]

If you're not comfortable with a company don't deal with it. It's rather your call what you think of as comfortable of course, and the agency business is highly volatile anyway but enough reserves to pay the immediate bills is an obvious one.

If you want a safety belt, IPSE+ membership bundles protection against agencies going bust up to a sensible limit. Along with a lot of other useful items...

Of course if I'm not comfortable I wouldn't follow something up, the reason I picked out this company in particular was because there seems to be both positive and negatives to the records which makes checking them more confusing. In general I guess I'm asking what other contractors look out for when they carry out checks.

I am already an IPSE+ member and I'm aware of the protections they offer, but obviously I'd like to avoid getting my company/myself into a difficult situation in the first place.

[SueEllen]

Of course if I'm not comfortable I wouldn't follow something up, the reason I picked out this company in particular was because there seems to be both positive and negatives to the records which makes checking them more confusing. In general I guess I'm asking what other contractors look out for when they carry out checks.

I am already an IPSE+ member and I'm aware of the protections they offer, but obviously I'd like to avoid getting my company/myself into a difficult situation in the first place.

Then don't take the contract from them and walk away. I have.

[LondonManc]

Have you ever managed to negotiate this with an agency that you've felt is a bit dodgy?

I've never been in a situation where I've asked for weekly pay and not got it, no.

MrMarkyMark had a similar battle and got the hiring manager involved because the agency was being arsey. He won

[eek]

Have you ever managed to negotiate this with an agency that you've felt is a bit dodgy?

Provided all the candidates didn't come from the same agency an agency wil accept such terms.

If it's a sole agency role though chances are you are suddenly unsuitable and the number 2 candidate is getting off the bench

[MrMarkyMark]

I've never been in a situation where I've asked for weekly pay and not got it, no.

MrMarkyMark had a similar battle and got the hiring manager involved because the agency was being arsey. He won

Yeh, how many months and how many mails.
A little different in that they were trying to switch me from weekly to every 6 weeks, due to trying to switch me to the "in house" agency.

I had to threaten to walk in the end, was agreed just one day before I was going to be off for good.

[Fred Bloggs]

I have always managed to get weekly invoicing and 7 day payment terms. It is the best way to insulate yourself against really bad agencies. But keep on top of it. The minute a payment isn't received on time be prepared to down tools.