Pay weekly changed to pay monthly

[Platypus]

Agent has got in contact again and asked whether it would be an issue for me to go monthly. I said yes, a huge one.

This might sound like another stupid question but I am going to ask it anyway:

If I move to pay monthly, that puts my company at about 4 times the credit risk, this is not in the best interest of my company. Therefore would I even, legally, be allowed to do it as I have to act in the best interests of the company?

If the alternative would be termination, then yes it's in the company's best interests to get paid monthly rather than not at all. Having said that, I agree very much with everyone who has said keep being paid weekly. I think it was chef who first pointed out that this request could very well be linked to the agency having their own cashflow issues. This is a red flag.

[GillsMan]

Agent has got in contact again and asked whether it would be an issue for me to go monthly. I said yes, a huge one.

This might sound like another stupid question but I am going to ask it anyway:

If I move to pay monthly, that puts my company at about 4 times the credit risk, this is not in the best interest of my company. Therefore would I even, legally, be allowed to do it as I have to act in the best interests of the company?

Glad you said it would be a problem, though I would be going further and saying it was absolutely not possible. If they really push, then consider negotiating. Ask for a pretty tasty daily rate increase - to come out of their margin, not the client's pocket - to go monthly.

But saying that, the very fact the agency is asking you to change terms is a serious indicator of potential cashflow problems, so possibly you should just big fat ask them why the want to change. But there is absolutely no benefit to your company from changing terms (unless you either change terms or get the can), so don't acquiesce their request.

[MyUserName]

Before I pay for a company to do it, is there a free way to check a company's credit rating?

[JamJarST]

Before I pay for a company to do it, is there a free way to check a company's credit rating?

Pay for it, you can afford it and lets be honest if it higlights a problem then it is money well spent.

[LisaContractorUmbrella]

Before I pay for a company to do it, is there a free way to check a company's credit rating?

You can get very basic information from Companies House for free e.g. you would be able to find out when they were incorporated, directors' names and when accounts last filed but for credit score info you will definitely have to pay.

[AnonAgent]

Interesting, my agency only pays monthly. The counter argument would be that the cost to the agent of doing 4 payrolls rather than 1 is higher - time on staff - and also that the payment terms we have with our clients varies between 14 and 60 days.

However I rarely have any complaints about this payment method and also, I have never had a contractor request or suggest they were going to do a credit check, which is far more important than weekly payment.

[darrenb]

Pay for it, you can afford it and lets be honest if it higlights a problem then it is money well spent.

I think these credit checks will become far more common in Britain as the economy worsens.

Unfortunately this amounts to another tax on honest contractors.

[JamJarST]

I think these credit checks will become far more common in Britain as the economy worsens.

Unfortunately this amounts to another tax on honest contractors.

How is it a tax? It is a business expense that you budget for and build into your business model and plan, just the same as accounting fees and office costs.

[MyUserName]

Apparently they have a rating of 44 which is 'Credit Worthy'.

Can anyone translate this for me? Should I be worried about this?

[v8gaz]

Apparently they have a rating of 44 which is 'Credit Worthy'.

Can anyone translate this for me? Should I be worried about this?

A decent credit reference will suggest a maximum exposure. Did yours provide this?