Can an Agency insist on Monthly Invoicing. in current situation..?

[OwlHoot]

In current difficult situation can any agency insist contractors should take monthly invoicing..?

Especially may have cash flow issues & too riskly to leave big amount with agency as many companies are going to administartion now...

Any thoughts..? If they insist on monthly how to convince that need weekly invoiceing..? Thanks.

Is this true monthly invoicing, or a month delay before the weekly invoices start being paid for those outside IR35 (as per Reed Consulting) ?

[Whorty]

So you're choosing to switch from umbrella (inside IR35) to LTD (outside IR35) but the work you're doing, and the client you're working for, remains the same?

Seems a bit risky particularly if HMRC start sniffing around.

Re your actual question, presumably the contract with the agency hasn't materially changed apart from they will be paying your LTD rather than the umbrella? How frequently does the agency pay the umbrella now? Not, how often do you get paid by the umbrella, but how often does the umbrella get a payment off the agency?

[LondonManc]

Ok..Thanks.

May be because all I saved over the years I invested in my 2 million Home. Now struggling to pay Mortgauge..?

Yet you're still struggling to negotiate payment terms with an agency and asking on here for advice? There's hope for all of us.

[AnthonyQuinn]

In mycase this is not a new contract, existing long term contract with Umbrella is moving back to Ltd company since IR35 implementation delay. So walking away is not an option for either parties I think.

Then you should be worried more about Sunak than monthly invoices

[rogerfederer]

They can insist on it, in the same way you can walk away from your contract.

There's very few IT agencies I know of that choose to do weekly invoicing as it's more expensive for them.
It's times like these where contractors who have been contracting for years are glad that they built up a archest and haven't just squandered every penny they earned on buying bigger houses, bigger cars, etc.

In all my years I've never had a monthly payment cycle. It's always been weekly. If monthly was ever approached in a conversation I just mentioned weekly was preferred to avoid a breakdown in trust in the future.

This forum seen a period of time when many people were losing 2 to 3 months business payments as a result of being palmed off by agencies. Not worth the risk. In my case I've never lost anything but wouldn't accept more than one missing payment and so maximum of 1.5 weeks business income. I'm happier with this decreased risk.

[Old Greg]

In current difficult situation can any agency insist contractors should take monthly invoicing..?

Especially may have cash flow issues & too riskly to leave big amount with agency as many companies are going to administartion now...

Any thoughts..? If they insist on monthly how to convince that need weekly invoiceing..? Thanks.

What are the payment terms? It can be difficult to shift an agency that works on monthly invoicing to weekly invoicing,.

Monthly invoicing + 7 days payment terms, is better than Monthly invoicing + 30 days payment terms. And you should be playing hardball now with access to the staff car park.

[Yuri F]

Depends who initiates change of these terms,
There's a chain: Client-Agent, Agent-Supplier

If Client-Agent payment terms is: weekly, but Agent-Supplier forces to monthly - then something smells really bad, it can go tits up easily in current environment.

If Client-Agent terms change from weekly to monthly then Agent shouldn't take risks (especially assuming Ltd/ Not in IR35 Scope contract format, although depends on premium they charge off your rate..) and it is passed to Supplier/Ltd, but it obviously rises question on Client' motivation and their liquidity situation, it does makes sense under some conditions to finance (current assets) activity via accounts payable if borrowing rates on open-market sky-rocket (borrowing from bank these days can score 30% pa rate, despite whatever gov tries to declare all over the news to calm down situation, reality is a b$^%h and gov job is to give hope not necessarily to keep the promise..) as cheap substitute, bot for other scenarios it's much worse sign of system failure - not just short-term situation.

and so on, therefore try to sniff-out what triggers it on both segments (if it's justified or simply a con to accumulate higher debt before ditching it).. otherwise it might end with sad news to your pockets...

[Old Greg]

Moved to General, eh?

[BrilloPad]

It might have cost you 2 million (I notice you didn't mention the currency), but have you checked to see if it's still worth over £1million in today's market?

The house is only worth £500k. But the parking spaces are worth £1.5m.....

[northernladuk]

Depends who initiates change of these terms,
There's a chain: Client-Agent, Agent-Supplier

It's pretty clear where the change is surely?

If Client-Agent payment terms is: weekly, but Agent-Supplier forces to monthly - then something smells really bad, it can go tits up easily in current environment.

Client agency payments weekly? You are having a laugh aren't you. If it's under 60 days they've done well.

and so on, therefore try to sniff-out what triggers it on both segments (if it's justified or simply a con to accumulate higher debt before ditching it).. otherwise it might end with sad news to your pockets...

We know what's triggered it, he's moved to an agent that only offers monthly billing.