Small agency and payment terms

[Cookielove]

Normally I work via large agencies, have a potential role but when I looked up the company name it’s just a one man band by looks of the website.

Searched on companies house and the accounts show losses…

in normal times I’d pass but I need a job asap…it’s been 6 months plus…

Would you proceed and say I want paid weekly that’s my terms …

[gixxer2021]

Sounds like a potential start up? Is the work interesting, with good autonomy? I’d definitely consider it if it’s good tech, wfh (if you want that!) etc, and keep looking in the meantime.

I’m at a small start up atm, great tech and autonomy, outside ir35 and love it, I’ve had trouble getting paid a few times but overall been a good experience so far.

[jamesbrown]

Yes, given your situation, I wouldn't dismiss it. As you say, it makes sense to mitigate risk with payment terms.

[Cookielove]

It’s not a start up.

it’s not wfh either.

I think you are getting confused the client isn’t a start up.

My concern is around the agency the agency that contacted me is not your usual big agency. He is a one man band agent he is the sole person working for the agency that he has setup. I’ve looked at his website and Companies House.

His company the agency name has accounts filed with CHouse and last few years are in big losses and owing with no money in the bank…so cash flow issues or something…

My concern is will I get paid as he would be paying me into my limited company …it’s not like the big agencies who factor their debts and pay you weekly before they even get paid by the client.

[Cookielove]

Yes, given your situation, I wouldn't dismiss it. As you say, it makes sense to mitigate risk with payment terms.

Thanks. That’s what I’m going to do, can’t dismiss it given my situation.

[gixxer2021]

It’s not a start up.

it’s not wfh either.

I think you are getting confused the client isn’t a start up.

My concern is around the agency the agency that contacted me is not your usual big agency. He is a one man band agent he is the sole person working for the agency that he has setup. I’ve looked at his website and Companies House.

His company the agency name has accounts filed with CHouse and last few years are in big losses and owing with no money in the bank…so cash flow issues or something…

My concern is will I get paid as he would be paying me into my limited company …it’s not like the big agencies who factor their debts and pay you weekly before they even get paid by the client.

Ah sorry I misread that as the end client. This wouldn’t put me off, but agree mitigating with the payment terms is definitely the way forward. Worst case if there’s trouble with payments speak to the client and see if you can move agencies down the line. In the current market I’d keep any option on the table.

[jamesbrown]

Thanks. That’s what I’m going to do, can’t dismiss it given my situation.

Sounds like a plan - hope it works out!

[Cookielove]

Thanks all!
it’s such a bad situation at the moment sure a lot of people are in the edge…

[Protagoras]

Is there the option may be to obtain insurance against non-payment in the case of agency failure? I think that this should be possible for an 'outside' gig.

Of course it makes sense to negotiate prompt payment terms and steer clear of monthly invoicing, but that's desirable for all contracts.

I suppose another question is how much the work costs to perform. Having to pay out for travel, accommodation etc makes the risk rather different from, say, WfH where the losses would be limited to the opportunity cost.

[courtg9000]

Is there the option may be to obtain insurance against non-payment in the case of agency failure? I think that this should be possible for an 'outside' gig.

Of course it makes sense to negotiate prompt payment terms and steer clear of monthly invoicing, but that's desirable for all contracts.

I suppose another question is how much the work costs to perform. Having to pay out for travel, accommodation etc makes the risk rather different from, say, WfH where the losses would be limited to the opportunity cost.

There is to my knowledge no insurance product available for this.
Invoice/Debt factoring comes close but you will find that you get clobbered on the terms and fees and thus this would render this avenue financially unviable.