First contract: going with a small agency. LTD company address disparity.

[lupinwhite1]

Hi All,

I've been looking at the boards for a while, assimilating all the useful info I can (yes, I've explored the sidebar on the right). Following all the great advice, I've registered myself as limited, have immediate availability, and a couple of interviews coming up. However, one of the interviews is via a small agency. I'm probably being paranoid but I was wondering (if I'm successful) as to payment terms. I know these can be discussed prior to signing the contract but I'm wondering if there are any obvious steps I can take to mitigate the risk of non-payment. I'm slightly concerned as to why the registered ltd company has a different address listed on their website as to that which I see via Companies House. Obviously, I can ask the rep, but I thought this question was a good one to enter the fray with.

Thanks for all the useful info, it's been -- and will continue to be I'm sure -- an education.

Hmmm...bbq weather outside...

[Wanderer]

Welcome!

any obvious steps I can take to mitigate the risk of non-payment.

7 day payment terms, weekly invoicing is a good opening shot. I don't go in for credit checking companies because companies go bust without warning anyway. The best way to mitigate the risk is to take out agency failure insurance (eg, though the PCG)...

I'm slightly concerned as to why the registered ltd company has a different address listed on their website as to that which I see via Companies House.

That's not unusual, I wouldn't worry too much. My company address is the accountant's office...

[jamesbrown]

registered ltd company has a different address

It's common to have a registered address (at Companies House) that's different from the trading address, where your company operates. For example, you might prefer to have the publicly available registered address as your accountant's office.

[BolshieBastard]

If using a small agency, always try for weekly payment and no more than fortnightly.

More than that and you risk losing a lot of money if they go tits up without paying you.

The agents will try and convince you that monthly is OK but, if they have offered you the role, stand firm as they wont want to risk losing you once the client has identified you as the one they want.

[NotAllThere]

Do bother with a credit check. At the very least you can use it in negotiation - "I've had a credit check performed on your company, and I'm advised that 30 days is far too high a risk". An important point in negotiation is to have a reason for your demand that the other party can accept. "I want seven days because I don't trust you" doesn't really work as well.

[lupinwhite1]

Thanks for (politely) highlighting my naivety regarding the LTD situation...and putting some fears to rest

Should I get the gig, I'll push for 7-day payment terms with weekly invoicing and see what I can negotiate.

Really appreciate the help. Many, many thanks.

[AussieDigger]

Word of advice - avoid any 'agency' that is small and not registered as a proper certified agency with REC, APSCO or another such body.

I recently had a contract with an 'agency' called SAPSYS who weren't setup that way and had no end of difficulty with everything from contracts to time sheets to payment and the like. They are accountable to no one if they are not registered and you are just asking for future problems - regardless of the contract used.

[lupinwhite1]

Word of advice - avoid any 'agency' that is small and not registered as a proper certified agency with REC, APSCO or another such body.

I recently had a contract with an 'agency' called SAPSYS who weren't setup that way and had no end of difficulty with everything from contracts to time sheets to payment and the like. They are accountable to no one if they are not registered and you are just asking for future problems - regardless of the contract used.

Hmmm...hadn't considered this. Looks like it's something I need to investigate. Thanks for the warning.

[SueEllen]

Word of advice - avoid any 'agency' that is small and not registered as a proper certified agency with REC, APSCO or another such body.

I recently had a contract with an 'agency' called SAPSYS who weren't setup that way and had no end of difficulty with everything from contracts to time sheets to payment and the like. They are accountable to no one if they are not registered and you are just asking for future problems - regardless of the contract used.

I've worked for small agencies and had no problems getting money out of them.

I've worked for larger agencies who are registered with one of the above bodies who made lots of "admin mistakes". The above bodies aren't that independent.

The point is regardless of the size of the agency you need to take a due diligence approach and not give them more credit than is absolutely necessary. Making sure you know who is the person responsible for the contract at the end-client, you have their contact details and aren't afraid to talk to them also helps a lot.