Weekly or Monthly?

[TheFaQQer]

Just to update you on this, we have informed some of our contractors that they will now be getting paid monthly and some have totally seen their arse over it.

So, did you negotiate the change in terms, or did you just impose them on your suppliers? If I had an agent trying to change the terms that we had agreed to, then I would have no sympathy at all, would treat it as a breach of warranty, and be out the door (after explaining to the client exactly why I was leaving).

we've been surprised by the backlash

Well, you are pretty numb then, aren't you?

- but if you are getting paid in excess of £60k-£70k a year whats the point in getting paid every week?

The point is that you are having cashflow problems. Why else are you changing the payment terms? If you are going bust, then I would be a little upset by it, to say the least. It's also not about how often you get paid, it's about the contract that your company agreed with the contractor - how would you react if the contractors suddenly imposed new conditions on you, e.g. new rate, new notice period etc.

anyway, loving all the agent hating on the forums, makes me smile at least. seems like all we have to do is be a half-decent consultant and we'd still be better than every other cowboy out there! result.

Doesn't sound likely, now does it? If you are going to be having cashflow problems, then word is going to get out amongst contractors and clients about how you chop and change your terms and conditions having agreed a contract.

Expect a few new threads over the next week or so about scumbag agents changing the payment terms and what can they do about it. Also expect to be, quite rightly, named and shamed.

[RichardCranium]

Expect a few new threads over the next week or so about scumbag agents changing the payment terms and what can they do about it. Also expect to be, quite rightly, named and shamed.

That won't bother Whatevs. By then he'll have been told "there's been an admin problem regarding last quarter's commission and it might be a bit late". By Christmas he'll be up the Job Centre and wondering if he might get any redundancy payment so he can buy his kids something for Xmas.

[cojak]

Agency changing from weekly to monthly payments - HELP!
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Ah! Now I get it!

[Whatevs]

So, did you negotiate the change in terms, or did you just impose them on your suppliers? If I had an agent trying to change the terms that we had agreed to, then I would have no sympathy at all, would treat it as a breach of warranty, and be out the door (after explaining to the client exactly why I was leaving).



Well, you are pretty numb then, aren't you?



The point is that you are having cashflow problems. Why else are you changing the payment terms? If you are going bust, then I would be a little upset by it, to say the least. It's also not about how often you get paid, it's about the contract that your company agreed with the contractor - how would you react if the contractors suddenly imposed new conditions on you, e.g. new rate, new notice period etc.




Doesn't sound likely, now does it? If you are going to be having cashflow problems, then word is going to get out amongst contractors and clients about how you chop and change your terms and conditions having agreed a contract.

Expect a few new threads over the next week or so about scumbag agents changing the payment terms and what can they do about it. Also expect to be, quite rightly, named and shamed.

I'd just like to say for the record that the agents that you lot talk to won't have anything to do with payment terms changing, thats looked after by the men in suits upstairs.

feel free to name and shame, it doesn't affect me in the slightest. also, my company has absolutely no cashflow problems whatsoever, theres no commercial sense in paying out 4 times a month when you only get paid in once, thats all.

[Not So Wise]

heres no commercial sense in paying out 4 times a month when you only get paid in once, thats all.

Yes there is, it's called providing a factoring service, which is only reason agencies can justify margins of 10%+ after the first 3 months of a contract.

Provide service you get paid for or drop to margins of < 2% after 3 months

My rule is simple, greater than 7 days from invoice to payment means weekly payments. Less than 7 days and I am willing negotiate a monthly invoicing schedule at contract start/renewal. (Though don't ask me to accept weekly to monthly change like this at renewal unless I am getting something out of it or you will be told to Feck Off)

Any attempt mid contract to change payment terms in a negative manner (once had agency want to change from monthly to weekly, which I obviously accepted) will result in client being told immediately that agency is jeopardising the contract. Something that will make any agency with sense back off and if they don't means they are having serious money problems and I (and client) probably don't want to continue doing business with them anyway

[TheFaQQer]

also, my company has absolutely no cashflow problems whatsoever, theres no commercial sense in paying out 4 times a month when you only get paid in once, thats all.

Of course it doesn't. That's what they tell you at least.

There's even less commercial sense in breaching all your contracts for not good reason.