Pay weekly changed to pay monthly

[MyUserName]

It said that the Credit Limit (amount that could be advanced to the company which the could be expected to pay back in one month) was £2500 which struck my as extremely low.

This is what confused me, if they can only afford to pay £2500 a month, how could they have a rating of 44?

I assume I must be misunderstanding one of these so I thought I should check!

[v8gaz]

Well there's your answer. Tell the agency that you would love to go monthly, however the credit report suggets that you need to limit them to 2500, so by accepting weekly you're doing them a favour.

[MyUserName]

Well there's your answer. Tell the agency that you would love to go monthly, however the credit report suggets that you need to limit them to 2500, so by accepting weekly you're doing them a favour.

Is the report seriously that simply?!

This company should not be relied upon to be able to pay more than £2500 a month?!!!

Surely there must be other factors to consider otherwise they would vanish overnight!

[GillsMan]

Is the report seriously that simply?!

This company should not be relied upon to be able to pay more than £2500 a month?!!!

Surely there must be other factors to consider otherwise they would vanish overnight!

Look, do you want to stay on weekly payments or not? I'm guessing you do want to stay on weekly payments, so simply say that, having reviewed their company credit rating, YourCo is only able to extend them credit up to a value of £2,500.00. So, much as you'd love to be able to help them out, unfortunately, you'll have to stay on weekly billing.

It's that simple IMO.

[v8gaz]

Is the report seriously that simply?!

This company should not be relied upon to be able to pay more than £2500 a month?!!!

Surely there must be other factors to consider otherwise they would vanish overnight!

You have paid for a report to advise you on their creditworthyness. Why would you now question that report? The £2500 is not a limit in total to all their creditors, just you. When you add up that they probably have hundreds of creditors at any time, then this figure makes more sense.

But feel feee to pay for professional advice and then ignore it.

The real point of my post was that you now have hard evidence to support telling the agency to keep paying weekly. We're trying to help you here, honestly !

[MyUserName]

Look, do you want to stay on weekly payments or not? I'm guessing you do want to stay on weekly payments, so simply say that, having reviewed their company credit rating, YourCo is only able to extend them credit up to a value of £2,500.00. So, much as you'd love to be able to help them out, unfortunately, you'll have to stay on weekly billing.

It's that simple IMO.

Yes, thanks for the advice.
However, at the moment I am asking whether I have correctly understood the credit report and am trying to cut down on the amount of questions I will need to bore you with in the future. Whether switching to monthly billing or not would be a good idea has, as you pointed out, already been covered.

You have paid for a report to advise you on their creditworthyness. Why would you now question that report?

I was questioning my understanding of the report, in case I had not understood it correctly as the conclusions it lead me to were suspicious.

The £2500 is not a limit in total to all their creditors, just you. When you add up that they probably have hundreds of creditors at any time, then this figure makes more sense.

This is what I had misunderstood, thanks for clarifying. I will therefore never need to ask this type of question again.

We're trying to help you here, honestly !

And it is much appreciated, thanks!

[TheFaQQer]

If the agency is asking to renegotiate the terms of the contract (which they are), then you are at liberty to negotiate.

If the credit check isn't good, then you have better grounds for negotiation than otherwise. If you don't want to change, then tell them no. If they try to force you into it, then you negotiate an increase in your rate to accommodate the extra risk that you are taking.

[The Agents View]

Tell them to piss off, you're running a business not a bloody charity.

Proper businesses get paid on 30 days terms.

Whilst it's possible that there's a cashflow issue, the much more likely scenario, is to cut down the admin and make cost efficiencies for the agency. One payment vs. four.

Unfortunately, anything an agency does, which is posted about here, is pulled apart by morons who think they run businesses. Temps get paid weekly - businesses get paid 30 days after the submission of their invoices - Temps pay PAYE income tax - Businesses pay corporation tax. It's really very simple.

[eek]

Proper businesses get paid on 30 days terms.

Whilst it's possible that there's a cashflow issue, the much more likely scenario, is to cut down the admin and make cost efficiencies for the agency. One payment vs. four.

Unfortunately, anything an agency does, which is posted about here, is pulled apart by morons who think they run businesses. Temps get paid weekly - businesses get paid 30 days after the submission of their invoices - Temps pay PAYE income tax - Businesses pay corporation tax. It's really very simple.

It is if the company is big. The issue here is actually how much credit are you willing to extend to the agency. 1 Weeks credit is a total liability of £5000 (1 week invoiced waiting to be paid, 1 weeks work not invoiced). 30 days credit is a total liability of approaching £20,000 4 weeks credit (£10,000 invoiced waiting to be paid, £0 to £10,000 work not invoiced).

Personally I may be fine with 30 day terms but I wouldn't be if an agency was trying to change the terms midway within a contract with them.

[GillsMan]

Proper businesses get paid on 30 days terms.

Whilst it's possible that there's a cashflow issue, the much more likely scenario, is to cut down the admin and make cost efficiencies for the agency. One payment vs. four.

Unfortunately, anything an agency does, which is posted about here, is pulled apart by morons who think they run businesses. Temps get paid weekly - businesses get paid 30 days after the submission of their invoices - Temps pay PAYE income tax - Businesses pay corporation tax. It's really very simple.

Utterly moronic reply. In actual fact, many businesses invoice up front. For example, I invoice 50% up front and 50% on completion of my fixed price work. You don't run a business so I marvel at how you think you're even remotely qualified to call those of us that do, morons.

Another point - we're not talking about payment terms, we're talking about invoicing schedules here. My company invoices monthly, and payment terms are that agency pays within 3 working days of invoice. That's fine. And if I was invoicing weekly, and payment terms were 30 days, that would also be fine. But if I was invoicing monthly and payment terms were 30 days, there's very little chance I'd extend that sort of credit to some tinpot agency. Those terms are fine when I'm going direct, but not when I'm dealing with clueless agents.