OPUS recruitment

[malvolio]

My business mentors always told me to get invoices paid as soon as you can.

The last thing I want is a business going out of business owing me a huge chunk of change that I'll never see.

Negates the risk if invoices are paid weekly.

I pay my own salary twice a month (actually inline with my last permie job).

PCG Plus - free agency and client default cover...

[TheFaQQer]

exactly - that was the point I was making. I run my business to collect payment NET 7.

So negotiate that. The agency has offered you that facility, at a cost. If your demands cost them anything, then why shouldn't they pass on those costs to you?

If you can't agree on the payment terms, then walk away or back down.

Maybe your business mentors should have explained that contract negotiation requires negotiation?

[TheFaQQer]

So I asked for weekly and I was advised there is a 3% charge per invoice for that...

Doesn't sound right to me.

What doesn't sound right?

[centurian]

Had a gig with this bunch a few years back - had no issues. Every invoice paid on time.

But then, all those agencies that have gone bust were usually good payers until they got into trouble, so any agent is only as good as their last invoice payment.

The problem with monthly payment is that it's often 2-3 payment cycles before it becomes clear you are going to get caught, which can mean a difference between losing thousands and tens of thousands.

[Safe Collections]

The problem with monthly payment is that it's often 2-3 payment cycles before it becomes clear you are going to get caught, which can mean a difference between losing thousands and tens of thousands.

This!

[craig1]

I start with my default position of weekly bill, weekly pay and tend to play hard-ball once offered the role. Most agencies will buckle, it's my experience that the best agencies offer it anyway. There are some that just won't budge from monthly bill, monthly pay, they tend to be the budget ones with disastrously low margins though and you need to be right on top of them from the first day the first payment is late.

Once you've been around an industry for a while, you get to know the typical margin profile of the key agencies. Those on 15%+ margins have absolutely no excuse for not paying weekly bill, weekly pay and get no sympathy in negotiations. Those on <5% margins are probably going to be cash strapped and need to be carefully credit managed but get a bit more sympathy in initial payment terms negotiations as I'm going to be getting more money from them than normal.

Also, remember that this isn't a completely one-sided agency driven contract, everything's up for negotiation in the contract if you know what you're doing. If you don't know what you're doing then there are good law firms that understand contracting law and will do it for you for a very reasonable price.