Alternatives for getting paid

[rvg400]

Hi there,

I have a potential opportunity where I will go directly to a client without an agency involved. The problem I have is that for the last 8 years or so I have been going through agencies who have paid me weekly.

What I need to understand is what are the alternatives in turning my effort into cash on a weekly basis to maintain cash flow? Obviously, there is factoring or invoice discounting but are there other alternatives?

I did see in the past companies that would pay on a timesheet - are they still out there?

Any help will be really appreciated - even though I have been contracting for 20 years this is the first time this is an issue.

[northernladuk]

After 8 years is your cash flow so bad you can't survive a month or two while you get paid??

[rvg400]

Circumstances have worked against us so to answer the question no, hence the question on alternative sources.

[TheFaQQer]

I did see in the past companies that would pay on a timesheet - are they still out there?

If you have a client lined up, isn't this irrelevant? It only matters whether your prospective client will pay on those terms (hint: that's incredibly, incredibly unlikely).

If you need weekly payment then you need an agency or factor the invoice. Maybe even introduce an agency to the client who will do this at a low percentage rate, and you could have more control over the contracts between the three of you.

[tarbera]

Ask to be paid in advance ?

[l35kee]

Take out a payday loan to cover you until you get paid.


(But only pick one with a name that makes it sound healthy or refreshing, like "Satsuma", "Peachy", LuckyLoaans" or even "Sunny".)

[uk contractor]

If you go direct then its most likely 90 days wait you may get luck and its only 60 days. Agencies do have some uses after all perhaps give some money away & go via an agency instead if the client will allow that otherwise surely you have a healthy overdraft facility to live on for a few months?

[MrButton]

Look for a permie role where you get paid at the end of the month. Every month?

Or apply for a business loan (not sure how realistic this is) until you can get your finance in shape. But I don’t think this is a solution to an unhealthy business.

[Safe Collections]

You could also potentially look at some of the newer P2P lending/invoice discounting services available as they may be more flexible than traditional factoring or discounting companies.

Although it should be noted that once you start drawing down funds on unpaid invoices it can be very difficult to give it up again...

[northernladuk]

Although it should be noted that once you start drawing down funds on unpaid invoices it can be very difficult to give it up again...

Excellent advice from Safe Collections as usual.