What do agents earn on holding our money as long as posible?

[Lola C]

Been contracting for a while and the pimp never paid on time, always inventing some ludocruous excuses to hold the money. Do they earn a commision on holding the money for every day that goes?

[northernladuk]

I think it's more down to incompetence and manual processes than holding on to it for any financial gain.

[MPwannadecentincome]

There used to be a time when interest rates were high and there was financial advantage for intermediaries to hold money that wasn't actually theirs for as long as possible.

But since 2008 that reason has gone....

Apart from NLUK's reasons I would add that somebody is paying someone else first rather than you to keep away from the company overdraft.

[SueEllen]

Apart from NLUK's reasons I would add that somebody is paying someone else first rather than you to keep away from the company overdraft.

Agents can easily use invoice factoring.

[speling bee]

Been contracting for a while and the pimp never paid on time, always inventing some ludocruous excuses to hold the money. Do they earn a commision on holding the money for every day that goes?

ludicrous
commission

[Contreras]

Been contracting for a while and the pimp never paid on time, always inventing some ludocruous excuses to hold the money. Do they earn a commision on holding the money for every day that goes?

Maybe I am lucky, but I have never experienced regular late payments from agencies, out of 5 total worked through so far. If it were to happen more than once, never mind regularly late, then I would be concerned about the agency's cash flow position.

You can charge statutory interest on late payment. This is currently 8.5%, unless the contract says differently. You can also apply this retrospectively on invoices even if they have since been settled in full - something perhaps worth reminding them of.

[MPwannadecentincome]

Agents can easily use invoice factoring.

If they wanted to yes they could!

[JRCT]

I've never had this either, and in fact I've had the opposite with agents chasing me to get my invoices in weekly so they CAN pay me on time.

[SueEllen]

If they wanted to yes they could!

There are ways of making them want to.....

[doodab]

The chances are they are waiting to be paid rather than holding onto the money. Factoring only provides a %age of the original invoice value, so many smaller agencies end up with a short fall every month and are reliant on finally being paid in order to pay you. Before they are paid they simply lack the resources to do so. For the smaller guys it only takes one late paying client to screw things up.