Payment terms

[EasyTyler]

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.

You'd think so... but friendly warning, they don't (have to) work that way.

[firehawk]

Sure

well some business gotta learn! funny thing is just had a phone call from the same company but different location but for the same client and different location and she said that it maybe possible to change it to 14 days... as for 7 days it can be done but must be given to the MD for approval (but cannot as he is not in the country!)

[pmeswani]

Sure

well some business gotta learn! funny thing is just had a phone call from the same company but different location but for the same client and different location and she said that it maybe possible to change it to 14 days... as for 7 days it can be done but must be given to the MD for approval (but cannot as he is not in the country!)

If you really have to have 7, you could always tell the agent that you are happy to wait for the MD to approve it. You might be surprised how quick they can turn it around. If you can live with 14 days, then I would take it rather than negotiate further down, especially if you don't need to.

[firehawk]

Thanks.

but its just a bit of common sense and logic - there is no real reason for such a big company to hold the funds if other agencies can do it weekly, why cant they?

lets see how it goes

[pmeswani]

Thanks.

but its just a bit of common sense and logic - there is no real reason for such a big company to hold the funds if other agencies can do it weekly, why cant they?

lets see how it goes

They aren't hiding / witholding funds. To do a payment run, it would probably cost them money to process the batch transaction. (I don't know the cost, so I won't give figures). If they increase the number of transactions they have to make, they will have to pay more in payment fees. Why would any company want to pay more transaction / payment fees? I don't know if your agent does payment runs internally, or if they have outsourced it. I also don't know what bank / transaction fees they have to pay.

HTH.

[firehawk]

it would be an internal (not outsourced) accounts that they have. if other agencies can do it - doesnt make sense why they can't But i know what you are talking about

[TykeMerc]

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 (£££)

Ah well if there's no contract yet then payment terms are up for negotiation, your first post implied the contract was running already.
If longer than 7 or 14 days is unacceptable to you then make it clear that you simply won't accept the contract with payment terms that you don't like.

How long the client takes to pay the agency is irrelevant and if they mention it in the negotiation politely remind them that your commercial relationship is with the agency not the client.

[firehawk]

Thank-you. I appreciate that

[TykeMerc]

Thanks.

but its just a bit of common sense and logic - there is no real reason for such a big company to hold the funds if other agencies can do it weekly, why cant they?

lets see how it goes

Of course they can do it, they simply prefer not to and will only pay quickly if they're forced to by contract terms agreed.
They're adopting a commercial position of taking as long to pay as they can negotiate, that's common sense and logic from their viewpoint.

[robin]

I know that payment terms are negotiable but as yet have never had to do it but whats to stop the agency just saying 'we only run one payment run a month' I could not say whether that's true or not so how could you argue that I would just have to accept it.