Going direct...

[Rangster]

Hi guys,

I may have secured a direct contract with one of the big banks. I have never done this before, is there anything I should know or look out for regarding going direct and with the banks in particular? I assume the major downside may be that the payment terms may be longer than I am used to.

Any thoughts welcome

Waz

[Hex]

Is it really direct? All the banks I've worked at had Hays or Resource Solutions as their in house agency. I was supposedly direct, but they used RS to pay me and my contract was with RS.

[lje]

You have already identified the main issue of payment terms. Also note that it is quite common practice for large companies to delay payment beyond the payment terms to smaller companies too - make sure you've got enough float or use a factoring service. In addition, they are likely to want you to invoice monthly rather than weekly.

Also remember that negotiations will be face to face rather than through an agent - for some people this is an advantage and for others not so good.

Who is providing the contract? I provide my own contract but if they are providing it to you make sure you are happy with the provisions wrt IR35.

Can't think of any other negative at the moment...

[Moscow Mule]

Be prepared to act like a small business - defend your corner on contract terms otherwise you'll get raped on issues like amount of PI, warranty periods (assuming you're a dev) etc.

PCG contract is worth using as a starting point.

[RSoles]

I've known contractors who have been direct with one of the bigger banks.
I worked alongside them though I was through an agency.

Payment terms are always different on direct contracts and you may (will) have to chase payments. My record so far is 65 days, I guess this could come as a bit of a shock if you're used to being paid weekly.
Despite the delay in payments, I prefer direct contracts, cuts out the middle-man, means you don't have an agency translating/confusing client requirements, more of a business to business relationship.
Slow payments are only a problem at the outset; after the contract ends it's nice to have a few payments coming in......

I do find banks tend to try to get their money's worth, look out for expected long hours on a daily rate. Quote on the basis of ten hour days.
They also seem quite anal about start times and breaks.
I'd be worried about the IR35 status of most of the banking contractors I worked with.

Don't let me put you off by the way.

Oh yes, and banks are full of crumpet.

[moorfield]

Hi guys,

I assume the major downside may be that the payment terms may be longer than I am used to.

WYS. They'll take flipping ages to pay your invoices 2-3 months is not uncommon, so make sure you have a decent cash buffer, and when your invoice gets lost in numptyland mentally prepare yourself to deal with the admin people who know or care nothing about your predicament.

[escapeUK]

He who shouts loudest gets paid first.

Send statements in regularly reminding them of amount outstanding and the agreed terms. Tell your boss that obviously as a small business you will have to keep an eye on your cash flow and as such clients that go over payment terms will have to be put on stop.

A bank wouldnt let you keep on not paying. Take the same position with them.

With small companies, I make sure I am on excellent terms with the accounts dept and my last invoice was actually paid before I issued it. Ok this was an accident they managed to enter the previous invoice twice

[questiontime]

Tell your boss that obviously as a small business you will have to keep an eye on your cash flow

[Rangster]

Thanks all. Managed to talk them into using a agency even if it means slightly less for me. I just want an easy life!

[escapeUK]

Thanks all. Managed to talk them into using a agency even if it means slightly less for me. I just want an easy life!