Credit checking agencies

[dmini]

So ...
How many people do it - and who do you use? I've got at least 1 offer in, and probably getting another offer, but not agencies I have dealt with or seem very big (or to my mind very financially sound according to the free bit of companycheck - negative net worth)

[DeadEyedJacks]

Definitely worth it

Credit check the agency, the end client and any other company in the chain.
Your bank or accountant can usually offer these services on a PAYG basis.

If anything seems marginal look to move from monthly to fortnightly or weekly billings.
Also try to negotiate the payment terms down to a minimum.

Interestingly, some of the more savvy agencies are now seeking upfront payments from end clients prior to consultants contract commencement.

First sign of slow timesheet sign-off or delay payments start looking around and check your insurance cover.

[bluetoaster]

Credit check the agency, the end client and any other company in the chain

Yep. especially when the agencies have longer contract terms. Think how much credit you are extending to the agent, especially if you are on monthly payment terms with time after that until the invoice is paid. It soon adds up.

I'm currently using creditsafe which isn't cheap but I'm on an introductory rate.

[Safe Collections]

Credit check the agency, the end client and any other company in the chain.
Your bank or accountant can usually offer these services on a PAYG basis.

If anything seems marginal look to move from monthly to fortnightly or weekly billings.
Also try to negotiate the payment terms down to a minimum.

This! You really do need to know that all of the businesses involved in your gig are financially sound and don't have a history of non-payment. For a fairly in-depth look at the what and why of credit checking check out this guide here on CUK

First sign of slow timesheet sign-off or delay payments start looking around and check your insurance cover.

Now don't be hasty The first delay may or may not be an indicator of something amiss. In our experience nine out of ten delays are simply down to human error and are not symptomatic of something untoward.

But if payments are regularly delayed or a previously prompt client starts to drag their heels, well that's another story.

Yep. especially when the agencies have longer contract terms. Think how much credit you are extending to the agent, especially if you are on monthly payment terms with time after that until the invoice is paid. It soon adds up.

Agreed, ideally you want the agency/client to have a good enough credit limit to support at least three invoicing cycles. If they are cash poor then as DeadEye says look at reducing terms.

I'm currently using creditsafe which isn't cheap but I'm on an introductory rate.

Interesting, we wouldn't have thought most contractors would be conducting enough searches for a contract to be cost effective. Or are you just really nosey like us

[bluetoaster]

Interesting, we wouldn't have thought most contractors would be conducting enough searches for a contract to be cost effective. Or are you just really nosey like us

It is a very good introductory deal. I don't envisage continuing after the deal expires.

[Safe Collections]

It is a very good introductory deal. I don't envisage continuing after the deal expires.

Just check the contract/agreement. We are aware they used to include an auto renewal notice in the contracts, so if you didn't cancel in writing X amount of months in advance it renewed for another year at a higher price.

Not sure if that is still the case or not but better safe than sorry!

[bluetoaster]

Just check the contract/agreement. We are aware they used to include an auto renewal notice in the contracts, so if you didn't cancel in writing X amount of months in advance it renewed for another year at a higher price.

Not sure if that is still the case or not but better safe than sorry!

Thanks for the warning. I'll check the contract for that.