45 Day Payment Terms - Ridiculous or what?

[VirtualMonkey]

currently on 60 day terms with monthly billing and although it's a hard initial hit (depending on warchest) it can have its benefits.
as long as the company doesn't go bust/screw you over for the final few payments you've got a built in buffer to find the next gig.

[northernladuk]

Yep did have it IR35 checked.

That can take 3-5 days so this rush this is a load of rubbish no?

[Peter Loew]

currently on 60 day terms with monthly billing and although it's a hard initial hit (depending on warchest) it can have its benefits.
as long as the company doesn't go bust/screw you over for the final few payments you've got a built in buffer to find the next gig.

Ah, some light in this tunnel.

[Peter Loew]

That can take 3-5 days so this rush this is a load of rubbish no?

No, as part of my accountants' services they check contracts for IR35 compliance.

P

[Wanderer]

currently on 60 day terms with monthly billing and although it's a hard initial hit (depending on warchest) it can have its benefits.
as long as the company doesn't go bust/screw you over for the final few payments you've got a built in buffer to find the next gig.

Yeah, I had an agency try to "sell" it to me that way. "Look, if we pay you on 45 day terms then you will still be getting paid for 6 weeks after you leave!" Yeah, right. Great idea. Not. I'll have my money as soon as I can get my sticky mitts on it thank you very much.

Peter Loew, they saw you coming mate. They even slipped in a clause saying you won't get paid until they do which they will use if the client doesn't pay them. I hope you have agency failure insurance because that is an awful lot of credit you are extending to them.

My advice to you is:

1. Invoice weekly
2. Don't opt out of the agency regs next time
3. Not taking away from your negligence in signing the contract without reading it, but the people you got to review it should have flagged the draconian payment terms, in my opinion.

[tarbera]

lucky you

I am working through a small consultancy and only now have they said that payment terms are 45 days. I think this is absurd. Yes, I should have made sure prior to starting work but it all happened so fast!

When I questioned this, I was told the auto email I get back from the system is a marking for getting paid up to 45 days later. I am thinking of invoicing every 2 weeks rather than monthly.

Clearly they await payment from the client co prior to paying me.

Anyone on absurd payment terms like this?

P

I am 90 days EOM with one of my directs

[Peter Loew]

Yeah, I had an agency try to "sell" it to me that way. "Look, if we pay you on 45 day terms then you will still be getting paid for 6 weeks after you leave!" Yeah, right. Great idea. Not. I'll have my money as soon as I can get my sticky mitts on it thank you very much.

Peter Loew, they saw you coming mate. They even slipped in a clause saying you won't get paid until they do which they will use if the client doesn't pay them. I hope you have agency failure insurance because that is an awful lot of credit you are extending to them.

My advice to you is:

1. Invoice weekly
2. Don't opt out of the agency regs next time
3. Not taking away from your negligence in signing the contract without reading it, but the people you got to review it should have flagged the draconian payment terms, in my opinion.

Funnily enough I was about to renew my PCGPlus membership.

I'm not worried about the client not paying (they're a huge well known client). I'm not THAT worried about the consultancy going bust either. I am worried about late payments by the client which will mean hell for me. I will outright refuse to work if payments take longer than 45 days / 6 weeks in any case. No choice but to test this. I have 4 weeks to go before payment.

Btw, this isn't an agency, they're a consultancy with different clients. I and other contractors are considered 'associates' to this consultancy.

[MarillionFan]

I am working through a small consultancy and only now have they said that payment terms are 45 days. I think this is absurd. Yes, I should have made sure prior to starting work but it all happened so fast!

When I questioned this, I was told the auto email I get back from the system is a marking for getting paid up to 45 days later. I am thinking of invoicing every 2 weeks rather than monthly.

Clearly they await payment from the client co prior to paying me.

Anyone on absurd payment terms like this?

P

45 Days. One full month, Plus 14 days.

Just been paid though, thank fook.

[SimonMac]

My advice to you is:

1. Invoice weekly
2. Don't opt out of the agency regs next time
3. Not taking away from your negligence in signing the contract without reading it, but the people you got to review it should have flagged the draconian payment terms, in my opinion.

What has opting out got to do with payment terms?

[BolshieBastard]

What has opting out got to do with payment terms?

KUATB. His contract has a clause saying he wont get paid until the agency gets paid. Therefore if agency dont get paid and he's opted out, he'll never see that money owed.

BTW, I also agree with wandered. Anyone reviewing that contract should have flagged the payment terms.