Cost of agency on billing only basis

**Bluebird** · 10 December 2007, 11:38

Originally posted by dude69 View Post

I am unencumbered by an agent, and signing with a new company, they have offered to let me go through an agency, on a purely billing basis, or to contract directly with me.

I'm going for the direct contract, but I want to bill on the cost that the agency would charge.

It was suggested to me that it was 3%, which seems low compared to the 12/13% agencies charge for a full finding service.

Can anyone confirm this figure?

Have you not agreed a rate with them already ?

**Dow Jones** · 10 December 2007, 11:51

Agency cut

For billing only 3% is about right. This is what other (eg letting) agents charge for collecting and passing the money. Anything up to 5 % is acceptable, provided that you can negotiate regular (monthly-even weekly) payments irrespective of when the client pays them (60 days or so from invoices is the norm). Factoring costs are around 4-5 % these days, so it's worth it.

**WindyAnna** · 10 December 2007, 13:10

As PP said since they are likely to factor invoices it is usually between 3-5% depending on what rate they borrow at. I'm just going through same and all agencies on client PSL are prepared to do it at 5%.

**DodgyAgent** · 10 December 2007, 15:05

Originally posted by dude69 View Post

I am unencumbered by an agent, and signing with a new company, they have offered to let me go through an agency, on a purely billing basis, or to contract directly with me.

I'm going for the direct contract, but I want to bill on the cost that the agency would charge.

It was suggested to me that it was 3%, which seems low compared to the 12/13% agencies charge for a full finding service.

Can anyone confirm this figure?

We do it for 4% subject to credit worthiness of the client.

Cost of agency on billing only basis