Pay weekly changed to pay monthly

[JamJarST]

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.

What an absolute load of tosh, businesses get paid anything from in advance to COD to 7 days, 30days, 270 days etc.!!

[The Agents View]

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.

Errm. Actually I do. In fact, I run three businesses, 1 recruitment company, 1 holding firm, and 1 non-related business.

Who on earth is talking about invoicing schedules? I'm talking about Payment Terms. 30 days, is standard business practice - if you can get it lower than that, great - if you have to go higher, you ask why.

Another point - we're not talking about payment terms, we're talking about invoicing schedules here.

Quite clearly ARE talking about payment terms.

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.

Most of those "clueless" agents, have more business nouse in thier little fingers, than you've managed to conjure up in your entire being.

Assuming your "Direct" clients and your "clueless agent" have the same credit rating (because being a business, you've checked this - right?) - you are telling me, that you think because it's an agency, they're not "worthy" of your credit? More and more recruitment firms expect monthly invoices, payment terms 30 days. There's several reasons, but mainly it's to make morons like you, wait for your money, so that we can go bust in the meantime, and run off with your money - obviously.

[Wanderer]

Proper businesses get paid on 30 days terms.

Ooooh, so I'm not a proper business then. It may come as a surprise to agents but I really don't care if they think I'm proper or not.

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.

More rubbish. Having the cash to pay creditors is far and away a bigger problem for a business than the cost of the admin.

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.

Another nonsensical blanket statement. We get this sort of tosh all the time from agencies, definitely the agents view. You may like it when the noobies bend over and take it but "proper businesses" don't put up with it. I'm sorry if you can't come on here and pull the wool over our eyes but we are wise to the stupid agency tricks.

Nothing personal, it's just business.

[SueEllen]

Errm. Actually I do. In fact, I run three businesses, 1 recruitment company, 1 holding firm, and 1 non-related business.

Just because you run 3 businesses doesn't mean you know how all businesses are run.

I come from a family who have run and run different businesses for years. They don't operate the same way.

Who on earth is talking about invoicing schedules? I'm talking about Payment Terms. 30 days, is standard business practice - if you can get it lower than that, great - if you have to go higher, you ask why.

It's well known that certain well-known large businesses/organisations have a minimum of 90 day payment terms. That's standard for them as they pay nearly all their suppliers that way. Oh and they aren't in the same industry sectors.

Quite clearly ARE talking about payment terms.


Most of those "clueless" agents, have more business nouse in thier little fingers, than you've managed to conjure up in your entire being.

Just because a load of contractors who known other business owners who run businesses of all different sizes in different sectors have pointed out you are wrong doesn't mean you have to come on here and attack someone personally for disagreeing with you.

Assuming your "Direct" clients and your "clueless agent" have the same credit rating (because being a business, you've checked this - right?) - you are telling me, that you think because it's an agency, they're not "worthy" of your credit? More and more recruitment firms expect monthly invoices, payment terms 30 days. There's several reasons, but mainly it's to make morons like you, wait for your money, so that we can go bust in the meantime, and run off with your money - obviously.

I think you should actually understand what the problem is here instead of abusing people.

The issue is why should someone who is mid-contract agree to change their payment terms from 7 days to 30 days.

It's clearly not a good business decision. The only reason someone asks you to extend terms by that amount mid-contract then they have cashflow issues. If it's a pure admin problem then anyone with sense would wait until the contract is up for negotiation again.

[GillsMan]

Most of those "clueless" agents, have more business nouse in thier little fingers, than you've managed to conjure up in your entire being.

Is that the best you can come up with? Some blanket statement which doesn't hold up to anything? Deary me.

Well done. You have three businesses. I actually had no idea from your posts that you run three businesses. I'm impressed. Personally, I could only run one business. You see, it takes up so much of my time, and it has enough different revenue streams, that I simply wouldn't have time to run another two businesses.

[GillsMan]

Assuming your "Direct" clients and your "clueless agent" have the same credit rating (because being a business, you've checked this - right?) - you are telling me, that you think because it's an agency, they're not "worthy" of your credit? More and more recruitment firms expect monthly invoices, payment terms 30 days. There's several reasons, but mainly it's to make morons like you, wait for your money, so that we can go bust in the meantime, and run off with your money - obviously.

Nope, you've misread my point. Most of my clients are very creditworthy, high credit rating, large organisations, etc, etc. The nature of what I do means my services tend not to be of interest to smaller companies. Agencies, on the other hand, come in all shapes and sizes for what I do, and I could work through a small agency or a large one. Whatever their credit rating, if they are a small and new operation, there's no way I'm going to extend them the best part of £20K in credit, it's all about risks and that's not a risk I am prepared to take.

[contractuk]

Asked to switch from weekly to monthly

The agency is asking me if I would be ok to switch from weekly to monthly with the below reason:

The reason we asking is because there is a big lag between us invoicing the client and being paid. The time between the two is currently 8 weeks. As you can imagine, this is strain on cash flow especially as we run our small bank of contractors directly (without using a factoring company).

Also I want to mention that it's been just 6 weeks into this contract.

Do you thank they have a valid reason here? Thanks in advance.

[SueEllen]

The agency is asking me if I would be ok to switch from weekly to monthly with the below reason:

The reason we asking is because there is a big lag between us invoicing the client and being paid. The time between the two is currently 8 weeks. As you can imagine, this is strain on cash flow especially as we run our small bank of contractors directly (without using a factoring company).

Also I want to mention that it's been just 6 weeks into this contract.

Do you thank they have a valid reason here? Thanks in advance.

Nope especially if the client is a blue-chip or government.

Plus they knew the payment frequency before you signed the contract.

I had an agencies wait 90 days before they got paid....

[eek]

Nope especially if the client is a blue-chip or government.

Plus they knew the payment frequency before you signed the contract.

I had an agencies wait 90 days before they got paid....

+1 That excuse is a reason to insist on reducing terms rather than giving them better terms...

[TheCyclingProgrammer]

The agency is asking me if I would be ok to switch from weekly to monthly with the below reason:

The reason we asking is because there is a big lag between us invoicing the client and being paid. The time between the two is currently 8 weeks. As you can imagine, this is strain on cash flow especially as we run our small bank of contractors directly (without using a factoring company).

Also I want to mention that it's been just 6 weeks into this contract.

Do you thank they have a valid reason here? Thanks in advance.

Agency is clearly having cashflow issues, which on the face of it might seem like their problem but once your invoices start going unpaid it becomes your problem too.

That said, I'd be getting back to the agency and asking them if they think extending further credit to a company that's already mentioned cashflow issues is good business sense.

I'd carry on billing as normal and I'd be making the client aware that the agency is having issues and that you hope you don't have to leave them in the lurch if the agency stopped paying yiur invoices, hint hint.