Agency Payment Arrears

[DodgyAgent]

Weekly invoicing: Will allow 30 days to pay but always managed to negotiate down to 14 days or less
Monthly invoicing: Never accept more than 7 working days (bar once when I was a newbie)

The only way I would accept larger arrears timescales is if agency was taking a margin of less than 3-5% because otherwise they are really getting money for nothing (and even then I would probably raise my rate to cover the risk)

After a painful lesson 10 years ago (that once I mentioned above that I did not negotiate down) I put in place for myself a rule that if agency is late on any timescale by over 7 days I down tools after explaining to client why, only had to do that twice and funny enough each time money magically appeared in my account same day

Always make sure payment timescales are in contract, cannot count amount of times I have see people burned by contract's that have massive timescales when contractor was promised verbally by agent that payment would be received in fraction of time, only to have agency suddenly change to keeping to letter of contract a few months later.

Agencies can and do go bust pretty regularly, if you are going to accept huge exposure to agencies raise your rates accordingly.

I have always wondered about this. It seems that a few do indeed go bust but considering there are so many of us it never seems to be that many. It may well be that they go bust in their 100s but I never get to hear about them.

[Not So Wise]

I have always wondered about this. It seems that a few do indeed go bust but considering there are so many of us it never seems to be that many. It may well be that they go bust in their 100s but I never get to hear about them.

Vaguely remember someone posting last week an article that said something like 28 "employment agencies" went bust in last 12 months

[Hawkeye]

Finally got an answer from the Director as the agent has driven me up the wall. The answer is no. We have a turnover of £26 million and we will pay monthly with 14 days arrears or weekly with 21 days arrears and if you don't like it don't sign the contract.

Well I guess that told me then. I actually would like to give this contract a shot for the 6 month term so I gave in. Oh well.