Have broken a habit

[suityou01]

Yep and I ran away from a consultancy for that exact reason. Especially when you put 2 and 2 together and realise that you may not get paid because another contractor screws up the relationship resulting in the agency not being paid.

I should point out that SimonMac did work happily for the same consultancy for months....

This is you

[eek]

And here's one of those mythical factoring houses I mentioned

Debt factoring without recourse | Touch Financial

And note how it is described on the site.

But it’s going to cost you

Having said the above, there is a downside to debt factoring without recourse…you have to pay for moving the risk of bad debt from yourself to the debt factoring lender.

I really don't know what you were trying to prove here suity except for your inability to comprehend what is written in front of you...

Remember I started with this quote from Safe Collections..

Most factoring companies offer insurance as an added extra

Which the quote from you second UK site explicitly confirms. It's available, but it isn't included as standard.

Where it gets really entertaining is when we look at what speling bee is trying to solve

But I also queried payment terms which are payment 10 days after Consultancy's client has paid consultancy(!) Which leaves MyCo stuck in case of non-payment or late payment. Who can MyCo sue? There us no question about end client's ability to pay but that doesn't mean they will pay. They appear to be unwilling to budge but I will continue to try to negotiate.

and we look at the first UK site you posted that states

The factoring company accepts the risks around the debtor's failure to pay, but it does not insure against debts that are unpaid because of genuine disputes.

I really would have thought you would have learnt by now from your past attempts to point score against me. It doesn't work out well

[suityou01]

Persistence doesn't make you any less wrong eek.

Yes it costs. They are charging you for taking the risk. You pass that cost onto the client.

Or agree terms that take out some of the risk. Stage payments is another option.

What I am trying to do is give Old Greg some options.

I have been running my business for 7 years and through the toughest financial climate the world has ever seen, nearly lost the farm and am still standing and still successful at what I do.

You are a tit and lost this one fair and square and don't even have the self respect to back down gracefully.

I will enjoy slowly tearing you a new one at every given opportunity on here. You are the new MF.

Well done.

[eek]

Persistence doesn't make you any less wrong eek.

Yes it costs. They are charging you for taking the risk. You pass that cost onto the client.

Or agree terms that take out some of the risk. Stage payments is another option.

What I am trying to do is give Old Greg some options.

Yes by suggesting non-recourse factoring to cover the one issue that non-recourse factoring explicitly does not cover....

I have been running my business for 7 years and through the toughest financial climate the world has ever seen, nearly lost the farm and am still standing and still successful at what I do.

[suityou01]

[eek]

Looking in the mirror again?

[speling bee]

Due diligence

Thanks for all your reply guys. Have done a bit of due diligence over the weekend. Here is what I initially thought.

Consultancy I was going to contract with is a UK Ltd. "UKCo" owned by an overseas consultancy "OvCo1".

Now, on research, I see that "OvCo1" is in liquidation, unable to meet its debts. Its name was changed the day it went into administration. There is another consultancy in the same jurisdiction (pre-existing, not a Phoenix company) "OvCo2" with a similar name and identical share and directorship structure. UKCo has 7K in the bank.

So, they want me to contract with UKCo on the basis of unknown No. days payment terms with unclear recourse for late or non-payment by their client.

It's a real pity because it's a great gig and a great rate...

I think I'll have to let it go, but will offer to work if paid up front.

Any ideas from the congregation? (And they say we're not proper businesses...)

[BigTime]

You need to set your own payments terms (the maximum I would offer is 30 days after invoice) and since this lot look dodgy, factoring and pcgplus protection looks worthwhile.

[speling bee]

You need to set your own payments terms (the maximum I would offer is 30 days after invoice) and since this lot look dodgy, factoring and pcgplus protection looks worthwhile.

Thanks.

They're a consultancy, not an agency, so I think PCG Plus won't 'work'. I'm not sure I want to offer 30 days after monthly invoice = 60 days. I doubt they'll go for payment up front, but anything else seems like an unacceptable risk.

BTW, I have other full time contract work, but was going to run two clients part time /

[eek]

Thanks.

They're a consultancy, not an agency, so I think PCG Plus won't 'work'. I'm not sure I want to offer 30 days after monthly invoice = 60 days. I doubt they'll go for payment up front, but anything else seems like an unacceptable risk.

BTW, I have other full time contract work, but was going to run two clients part time /

How about invoicing the end client directly and paying the consultancy their cut once its received on the basis that your bank's credit checks said NO are you having a laugh....