Changed payment terms

[Wanderer]

As per current payment terms, I am supposed to raise invoice on the first friday of the new month for the previous month, and get paid on the next friday, which is excellent.

Don't take any tulip from them. Write back and say that after careful consideration, yourCo has decided to reject the new payment terms and payments must be made according to the previously agreed contractual terms. If payments are not made according to the agreed terms then the agency will become liable for interest and penalties under the Late Payment of Commercial Debts (Interest) Act.

All this about a different system is a smoke screen. The agency has cashflow problems and they want to put the risk onto you. I'd also get agency failure insurance - consider joining the PCG as they provide cover for this.

Extending up to 8 weeks worth of credit to an agency is just not going to happen in my books....

[tranceporter]

Don't take any tulip from them. Write back and say that after careful consideration, yourCo has decided to reject the new payment terms and payments must be made according to the previously agreed contractual terms. If payments are not made according to the agreed terms then the agency will become liable for interest and penalties under the Late Payment of Commercial Debts (Interest) Act.

All this about a different system is a smoke screen. The agency has cashflow problems and they want to put the risk onto you. I'd also get agency failure insurance - consider joining the PCG as they provide cover for this.

Extending up to 8 weeks worth of credit to an agency is just not going to happen in my books....

Good shout about PCG!