Agency Payment Terms

[seanraaron]

I do tend to ask what their payment terms are these days. Nothing worse than signing a new contract to find you bill weekly but it's on 28 days payment terms...

GE

My first lesson learned. It never even occurred to me that I could be paid on a weekly basis but 28 days in arrears. I initially assumed it was because they're waiting to get paid by their client, but when I put this to an agency payroll rep they said they paid on time regardless; waiting 28 days was just their standard "business to business" practice. Cute, when I'm an individual only using an umbrella because they said that I had to in order to do biz with them.

I'm thinking I should be asking this question before agreeing to have an agency put a CV forward, but I don't know if there's unspoken rules about this. I definitely don't want to have someone putting me forward for a gig only to find out at the 11th hour that they have something as basic as this wrong.

[MrMarkyMark]

waiting 28 days was just their standard "business to business" practice.
I'm thinking I should be asking this question before agreeing to have an agency put a CV forward, but I don't know if there's unspoken rules about this. I definitely don't want to have someone putting me forward for a gig only to find out at the 11th hour that they have something as basic as this wrong.

1st rule of thumb, read the contract.
Standard, as maybe, you should have tried to negotiate the payment time down, its as simple as that.
They will get away with whatever they feel they can do.

They haven't got it wrong, they have just managed to get you to accept payment terms with a greater risk to your LTD co.

[Antman]

My current contract states I get paid 2 weeks after submitting a monthly timesheet but I send the timesheets in weekly and get paid 2 weeks after that some sort of mix-up between contract area and accounts.

[TheFaQQer]

I definitely don't want to have someone putting me forward for a gig only to find out at the 11th hour that they have something as basic as this wrong.

What's wrong about it?

[seanraaron]

What's wrong about it?

I don't agree with it - if I'm getting paid on a weekly basis and they pay regardless of whether they have funds from their client, then I shouldn't be waiting a month for my money. Trying to figure out budgets on a weekly basis is hard enough without also having to bear in mind I'm actually getting paid for a time four weeks in the past. If they paid monthly that would be fine.

I accept that they're within their rights, etc., but it's bulltulip. I've already spoken to other agencies that don't operate that way, so I don't need to accept that. Needless to say if there's an extension discussion I'll mention it.

As far as reading the contract goes, I had no contract to read until I had a job offer and I couldn't get that until they submitted my CV. Like I said I've learned my lesson; I'll ask for agency terms up-front in the future. I should have done more research, but it could be worse!

[MrMarkyMark]

I don't agree with it - if I'm getting paid on a weekly basis and they pay regardless of whether they have funds from their client, then I shouldn't be waiting a month for my money. I accept that they're within their rights, etc., but it's bulltulip.
As far as reading the contract goes, I had no contract to read until I had a job offer

You might think it bull tulip, they would think it is good business

When you had the offer, that is the point you should have negotiated.

[psychocandy]

Must admit I find all this stuff about payment terms a bit weird. As long as its not excessive I have no problems with it.

Its getting pretty standard to have something like month payment terms so I dont understand why people are upset with it. Surely, if you can't wait a month you're doing something wrong.

Of course, late payment after this is a different matter entirely.

[TheFaQQer]

I don't agree with it

That doesn't make their business operating model wrong.

Needless to say if there's an extension discussion I'll mention it.

Good luck with that

As far as reading the contract goes, I had no contract to read until I had a job offer and I couldn't get that until they submitted my CV. Like I said I've learned my lesson; I'll ask for agency terms up-front in the future. I should have done more research, but it could be worse!

You had a contract before you started work, though, so that's the point at which you negotiate terms. Any earlier than this and you aren't in a position of strength. Get the "job", then you have something to negotiate with - any attempt to negotiate terms before that will end up with you going in the bin.

[MrMarkyMark]

Must admit I find all this stuff about payment terms a bit weird. As long as its not excessive I have no problems with it.

Its getting pretty standard to have something like month payment terms so I dont understand why people are upset with it. Surely, if you can't wait a month you're doing something wrong.

No, not all, I'm actually doing something very right.

When you are running a company, you should enter into as little risk as possible.
In this instance that means getting my invoices (debtors) to pay up ASAP.

[northernladuk]

I don't agree with it - if I'm getting paid on a weekly basis and they pay regardless of whether they have funds from their client, then I shouldn't be waiting a month for my money. Trying to figure out budgets on a weekly basis is hard enough without also having to bear in mind I'm actually getting paid for a time four weeks in the past. If they paid monthly that would be fine.

I accept that they're within their rights, etc., but it's bulltulip. I've already spoken to other agencies that don't operate that way, so I don't need to accept that. Needless to say if there's an extension discussion I'll mention it.

As far as reading the contract goes, I had no contract to read until I had a job offer and I couldn't get that until they submitted my CV. Like I said I've learned my lesson; I'll ask for agency terms up-front in the future. I should have done more research, but it could be worse!

You are in a B2B contract now. The payment terms could be 90 days and beyond if you went direct. The agent is doing you a favour factoring the money (well he isn't, he's being paid for it but you get my meaning). Different agents will mitigate there risk to different levels. If you don't like the payment terms you end the gig I am afraid. In a few cases the agents will bend but I wouldn't take that as a given.

I'd be a bit worried about managing weekly budgets on a weekly basis is hard though. Maybe if you can change that so you can manage your budgets a bit easier the length of payment terms will cease to be a problem and just become more of an annoyance? Does your accountant run an online portal? Maybe a spreadsheet system? Could be worth speaking to them to see if they can help with whatever is making it hard. SJD have a spreadsheet you can download for free or you could try a free trial of Freeagent? Running your company finance is a big part of contracting so if you can get on top of that it should be a weight off your mind.