Start up agency

[Manic]

All

I've been offered an interview for what on the face of it would appear to be a nice challenging role in the smoke. Day rate is decent but not huge. The agent appears knowledgeable and is personable.

Looking at the agency itself, it would appear to be a 1 man band plus employee located in an office share. No website and not a member of REC. I've looked over the abbreviated accounts for the 6 years the company has existed and must assume that salary is taken as no dividends shown, tax liability is small or nil. Apart from one year cash in bank is not much more than my monthly outgoings. There is an outstanding debenture to a factoring company starting 2011.

Now I'm not stupid, this all means hand to mouth existence, and a real risk that the company goes pop. I'm not yet aware of whether this might be monthly or weekly invoicing so worse case scenario I could be balls deep for 2 months invoices plus train expenses and accommodation.

I have alternative irons in fire which will mean WFH or expensed outings, however this role would be a significant enhancer. I could also be thinking that I have the interview as no one else would be stupid to work through them.

Thoughts?

[NotAllThere]

What does the credit check you ran on them say?

[SueEllen]

Weekly invoicing with payment within 7 days. But only if you like the client.

[Manic]

What does the credit check you ran on them say?

Maximum Risk - Significant Issues. 0 credit.

There is a deficit in both capital employed and shareholders funds.

There has been a very significant fall in shareholders' funds over the latest accounting period.

In our view this company is a very high credit risk. We therefore recommend you make full & detailed enquiries before offering credit. Add to monitoring list.

[malvolio]

Why would you want to trust your income and effectively extend significant credit to a non-viable company? You're supposed to be in business and as a director to minimise the risks to your company. Walk away. Quickly...

[Manic]

Am leaning that way too Mal. Might have to be a difficult phone call Monday

[SueEllen]

Am leaning that way too Mal. Might have to be a difficult phone call Monday

It's not difficult - you just tell them you have done a credit check on them and do not wish to do business with them.

I've told agencies to go away when looking at Companies House I can see they have loans outstanding and large dividends almost equal to their turnover.

[NotAllThere]

Tell them you'll do it but only payment weekly, in advance. Make the agent take the risk. If he's on the level, unless he finds a gullible fool, he'll do what he can to make the contract work.

[DodgyAgent]

Maximum Risk - Significant Issues. 0 credit.

There is a deficit in both capital employed and shareholders funds.

There has been a very significant fall in shareholders' funds over the latest accounting period.

In our view this company is a very high credit risk. We therefore recommend you make full & detailed enquiries before offering credit. Add to monitoring list.

[MrMarkyMark]

Thoughts?

Yep, I wouldn't have even gone as far as asking a load of strangers on an Internet forum.

Avoid.