How long to wait till getting paid ?

[hyperD]

Sorry if this is repeated above but I haven't the time to read...

If you are going direct then make sure you have a contract for the fixed price piece of work as approved by a professional body. Then put 30 days on you invoices with the terms for example:

Payment is due within 30 days of the invoice date. We reserve the right to claim statutory interest at 8% above the Bank of England base rate for late payment in accordance with the Late Payment of Commercial Debts (Interest) Act 1998.

The reason I say this is because if you don't you will get into a real embarrassing slagging match with a (big blue chip that outsourced their finance dpt to fcuking bangalore) client like I have... and you can't afford it.

A properly defined contract (inc late interest payments) shouts volumes in getting your invoice paid quickly...

[BlasterBates]

I agree with the above. You should have at least six months cash behind you, and I have to say even that isn't enough. With commitments especially if you have a family, I would be conservative and have enough dosh to live on for 2 years. Contracting on the edge is for single guys that can go tomato picking and live in a bedsit.

[ratewhore]

You don't need any contractual payment terms. 30 days is taken as standard unless stipulated otherwise. And you don't even need to add late payment clauses either...


...check here http://www.payontime.co.uk/

[PerlOfWisdom]

I agree with the above. You should have at least six months cash behind you, and I have to say even that isn't enough. With commitments especially if you have a family, I would be conservative and have enough dosh to live on for 2 years. Contracting on the edge is for single guys that can go tomato picking and live in a bedsit.

If you don't thing you'll be able to get a contract in less than 3 months, you shouldn't be in IT, never mind contracting.

[BlasterBates]

If you don't thing you'll be able to get a contract in less than 3 months, you shouldn't be in IT, never mind contracting.

What a naive statement.



We're trying to give a bit of decent advice here Perl.

Don't listen to him, Perl is just showing his gig wotsits.

[Lucifer Box]

With my biggest direct client the payment terms are 90 days, take it or leave it. This is not unusual with mega-corps.

[PerlOfWisdom]

What a naive statement.



We're trying to give a bit of decent advice here Perl.

Don't listen to him, Perl is just showing his gig wotsits.

So it's sensible advice to say "don't go contracting unless you have 2 years money behind you"?

How is anyone with a family to run going to build up 2 years' excess salary?

[freshblue]

I used Parasol on a direct contract and they were fine but as stated just remember that the payment terms are not in their control and they won't be agressive chasing your client for money as they will assume you want a long term relationship.

Using a brolly when going direct can also be useful for the insurances and support but make sure you get the payment terms you want.

[BlasterBates]

yes but being 3 months is nothing, it flies by, so think about it.

[hyperD]

So it's sensible advice to say "don't go contracting unless you have 2 years money behind you"?

How is anyone with a family to run going to build up 2 years' excess salary?

No, I think the difference here is that hopefully being paid by an agency/umbrella et al you will be paid within a few days/week/weeks of invoicing - hence the cost you pay out of [your rate/paid by client] for "factoring".

When you are dealing direct with a client, including global blue chips, you need [or they tell you] to agree the T&Cs of the payment terms. Funnily enough, the big guys tend to have some sort of "human rights, enforced business ethics" type shit that promises to pay you within 28 days or they'll whip themselves senseless. It's the smaller companies that tend to hold back with payment saying "we are waiting for a large client to pay us before we can pay you" etc etc

In all honesty, the chances of you still obtaining future work from a large company while suing about a week's worth of overdue invoices is slim. However, I have successfully obtained the backdated interest payment for an invoice that was 6 months overdue for a blue chip because they (a) had lost th original invoice and (b) had moved the entire operations to Bangalore.

To be honest, moving accounts department to Bangalore has given me the biggest boost to my turnover since laying of UK based accounts department. I'm all for it...