"Monthly Pay" - Is this normal

[Kyajae]

Pimp rang me this morning about what seems to be an attractive gig.

Then we cut to the chase on rates and pay frequency. His agency pays monthly - actually, you submit your invoices at the end of each week ensuring the last invoice for the month arrives by the 5th day of the following month. Then you get paid around the 15th day of the following month (i.e. potentially 6 weeks after the first invoice was sent in)

Anyone else had this arrangment? Does it have its pitfalls?

[senditback]

Pimp rang me this morning about what seems to be an attractive gig.

Then we cut to the chase on rates and pay frequency. His agency pays monthly - actually, you submit your invoices at the end of each week ensuring the last invoice for the month arrives by the 5th day of the following month. Then you get paid around the 15th day of the following month (i.e. potentially 6 weeks after the first invoice was sent in)

Anyone else had this arrangment? Does it have its pitfalls?

No but that is shocking - I can get paid twice a week if needs be, 'two pay runs' a week wednesday friday. why are they so slow?

[Kyajae]

No but that is shocking - I can get paid twice a week if needs be, 'two pay runs' a week wednesday friday. why are they so slow?

I seem to remember some line about the client not being known to the pimp before so they can't due a true credit assessment.

[malvolio]

No but that is shocking - I can get paid twice a week if needs be, 'two pay runs' a week wednesday friday. why are they so slow?

Good God, no!! Wht are you thinking of...? Put your timesheet in daily and demand payment in 24 hours. That's what real businesses do, isn't it?

[Bigbird]

Your agency is trying to keep their cashflow level by only paying you when the client has paid them. Nett monthly payment terms are standard in industry, and agreeing to them might be the only way this agency can keep the supply contract.

I would be a bit suspicious of an agency who so blatantly don't appear to have the funds either available or borrowable to pay you weekly. Most agencies are run on an invoice discounting basis so that as soon as they issue an invoice to the client up to 80% of the amount of that invoice is available for them to borrow on.

In your shoes I would also be worried that should the client not pay them for any reason will they delay payment to you even further. Have you done a credit check on this agency at all? Might be worth a look..........

[Kyajae]

Your agency is trying to keep their cashflow level by only paying you when the client has paid them. Nett monthly payment terms are standard in industry, and agreeing to them might be the only way this agency can keep the supply contract.

I would be a bit suspicious of an agency who so blatantly don't appear to have the funds either available or borrowable to pay you weekly. Most agencies are run on an invoice discounting basis so that as soon as they issue an invoice to the client up to 80% of the amount of that invoice is available for them to borrow on.

In your shoes I would also be worried that should the client not pay them for any reason will they delay payment to you even further. Have you done a credit check on this agency at all? Might be worth a look..........

That's a good idea. Does anyone know of a website that does free or cheap basic credit checks on agencies?

[Cowboy Bob]

Good God, no!! Wht are you thinking of...? Put your timesheet in daily and demand payment in 24 hours. That's what real businesses do, isn't it?

"Real" businesses will often ask for a certain percentage up-front if they've never dealt with a particular client before.

Personally, if I have never dealt with an agency before I demand at least fortnightly pay or I don't do the gig. It's called minimising risk.

[boxman]

Run a credit check on the agency and possibly the client too.

If the agency is large then you'll get paid eventually (all being well ) but on their terms rather than yourco's terms.

Bigger clients tend to prefer to deal with bigger agencies and payment terms all round tend to be stretched. I had to make this call when I started my current gig about 18 months ago but I've got used to the terms now and provided you're careful with your credit management then you'll be OK.

Make sure your invoices state yourco's payment terms and that the late payments legislation will apply as stipulated in law.

HTH

[malvolio]

Jeez, listen to yourselves. "We're big rufty-tufty contractors, but we don't want to be treated as one, we want payment on totally uncommercial terms just like normal employees"

No wonder we get IR35 and all the other crap, is it?

[The Lone Gunman]

Jeez, listen to yourselves. "We're big rufty-tufty contractors, but we don't want to be treated as one, we want payment on totally uncommercial terms just like normal employees"

No wonder we get IR35 and all the other crap, is it?

Many agents tell us that one of the reasons for their high percentage is because of the factoring service they provide. Why shouldn't we expect this level of service? We are paying for it.