Agency's terms of payment

[cojak]

You're a new contractor, aren't you?

Negotiate payment terms in your contract, otherwise make sure that you have enough savings to cover the first gap.

Threatening to walk is not the way to enhance your reputation.

[Xenoid]

You're a new contractor, aren't you?

Negotiate payment terms in your contract, otherwise make sure that you have enough savings to cover the first gap.

Threatening to walk is not the way to enhance your reputation.

Thanks for the advise. However, what is the agency is not willing to negotiate. Do I just have to go with it? is there any rules to make them pay earlier? there are no terms of payment in my contract.

[Hex]

Thanks for the advise. However, what is the agency is not willing to negotiate. Do I just have to go with it? is there any rules to make them pay earlier? there are no terms of payment in my contract.

If there are no specific terms of payment in your contract then the default terms are 30 days from receipt of invoice. These are standard business terms.

Last Thursday in the month is almost certainly within these terms.

[TheFaQQer]

However, what is the agency is not willing to negotiate. Do I just have to go with it?

Either take it or walk. That's the only choice if there is no negotiation.

[northernladuk]

Is this legal and is there a regulatory body for agencies that has something around invoices being paid? Do you reckon if the agency refuses to bring the pay date forward that I should talk to the client and threaten to break the contract?

That might scare the agency in changing their payment schedule.

Why do people assume stuff they don't like is legal all the time???? How many companies try and slap illegal practices on you in a written contract? And the other thing where someone gets a bit upset at customer service and asks if they can sue the company etc....

If the agency gets even a whiff that you don't understand payment terms and automatically assume they are doing something illegal they may not be that bothered you threatened to walk IMO.

[BolshieBastard]

I have read this thread and its a bit shocking actually. I am an IT Contractor and recently started a new contract. (Subcontracting). The agency I work through has not told me that invoices are paid on the last Thursday of the following month. Which means I will have to work a month and wait approx another for the invoice to be paid?

Is this legal and is there a regulatory body for agencies that has something around invoices being paid? Do you reckon if the agency refuses to bring the pay date forward that I should talk to the client and threaten to break the contract?

That might scare the agency in changing their payment schedule.

Surely when your co is due to be paid is one of the first things you check in a contract?

I wouldnt sign any contract if the things I didnt know about was how much my co was being paid or when it would be paid.

If you didnt raise this with the agent, then, you have accepted their payment terms by default.

You dont have to be a contractor to understand and act on these things.

[Not So Wise]

Contractor > Agency set up

Payment periods can vary a lot, worst i have seen is 90 days on monthly invoices best i have seen is same day on weekly invoicing. Many people seem to accept 30 days on monthly invoices for some strange reason.

Personally bad experience has taught me to never accept a risk exposure* of more than aprox 5 weeks. eg: 30 days on weekly invoices or 7 days on monthly. Anything else is just begging to get badly burned

*And it is a risk, agency's can and do go bust with scary regularity and as they generally have little to no assets your chance of getting moneys owed are virtually nil

Contractor to client direct

30 days on monthly invoices is generally accepted norm


But whatever the terms you agree to, make sure it is in the contract, do not just accept that the agent/client tells you verbally. And if what is in the contract contradicts what the agent tells ("Sure contract says 30 days, but we always pay next day") expect that sooner or later you will be getting paid at 30 days