Small Agencies

[MB1983]

How risky is it to get contracts through smaller agencies - in terms of them not paying, going bust, etc? I had a call from Akriss Recruitment about a contract that sounds good, but it looks to be a very small agency (perhaps just 2 people from what I can see on their website). Would you go for it if you liked the sound of the contract? Or is it best to avoid? My present contract (got a few weeks left) is through Hays, so I have no worries about payment, but would be quite paranoid about a very small agency I think!

[Murder1]

Depends what other options you have available. If you are really worried will they accept weekly invoicing/payment so you don't stand to lose too much if they go bust.

I'm a PCG plus member so you're covered to a degree should an agency go bust.

[MicrosoftBob]

Generally you're more at risk from smaller agencies as they tend to have lower working capital

This could be where the PCGs Business Interruption policy could help...

PCG’s Business Interruption policy allows a claim to be made on your behalf for up to £7500 if your client or agency goes into administration and you are not paid for work undertaken.

The losses will be limited to hours/days worked which the client or agency was due to reimburse

[DirtyDog]

Do a credit check on them and see what you find. If you are worried, negotiate weekly invoicing and weekly payment terms, so that you don't expose your business too much.

And get that insurance as well - bear in mind that there will be a run-in period before you can claim, so if you are worried, get it sorted now.

[mos]

If you are worried, negotiate weekly invoicing and weekly payment terms, so that you don't expose your business too much.

And get that insurance as well - bear in mind that there will be a run-in period before you can claim, so if you are worried, get it sorted now.

This ^

I lost 20K with these guys: http://www.yell.com/biz/alexander-bl...istol-6326027/

Unfortunately with this type of business you have very little chance of debt recovery.

[Safe Collections]

Do a credit check on them and see what you find. If you are worried, negotiate weekly invoicing and weekly payment terms, so that you don't expose your business too much.

And get that insurance as well - bear in mind that there will be a run-in period before you can claim, so if you are worried, get it sorted now.

We couldn't have said it better ourselves

This ^

I lost 20K with these guys: Alexander Black Recruitment, Bristol | RECRUITMENT CONSULTANTS - Yell

Unfortunately with this type of business you have very little chance of debt recovery.

Edit: Found them... When they went they certainly went with a bang Numerous winding up petitions and about £50k owed in CCJs.

Worth noting that the MD of that company now runs a firm called 2020 Consultants Ltd

[mos]

Out of interest, was that a UK registered limited company? We can't see any record of any company bearing that name...

Thanks for bringing that to my attention - their current CH record states:
ALEXANDER BLACK RECUITMENT LIMITED

It was RECRUITMENT before they went into liquidation.

[Kanye]

Thanks for bringing that to my attention - their current CH record states:
ALEXANDER BLACK RECUITMENT LIMITED

It was RECRUITMENT before they went into liquidation.

Wow, that is a piss take!

[Wanderer]

I'm a PCG plus member so you're covered to a degree should an agency go bust.

Another spin to put on it is that the PCG's insurance policy only covers up to £100,000 in losses from any individual end client. So if you are one of 50 PCG members with a big client/agency which goes bust then you are likely to get less than if you are with a small agency which only engages a small number of PCG members...

So, bizarrely, you may be safer working for a small agency.

[Andy Hallett]

http://www.hmrc.gov.uk/defaulters/defaulters-list.pdf

You might be interested in page 15 of this document issued by HMRC.