Find out if agency is struggling financially?

[Wanderer]

Still having troubles with a particular agency not paying invoices. I've got two outstanding now, and I'm getting very concerned about the status of the agency. Is there any way of finding out if they have cashflow issues or are struggling?

I have insurance against agency failure. It's a bit of piece of mind, they could fail without warning.

When you say "two invoices" how much time are you talking about? If it's two months then take action immediately. If it's two weeks then it's not so bad but send them an invoice for interest and penalties to show them that you are not to be messed with...

[RichardCranium]

I've been told that when I submit my next invoice, all outstanding payments will be made. This strikes me as very odd...why would they be wanting me to submit the next one? Why not just pay what is due now? My question is, am I better to submit the invoice, or to hold it back...what risks would I be taking by doing either option?

When Plexus / Plexian went bust many years ago, we all were in agreement that at the first sign of an agency getting into trouble one should stop submitting invoices.

ClientCo kept paying the agency but the agency stopped paying out. When they went down the toilet, the money paid out by ClientCo disappeared into the Big Black Debt Hole and the contractors got none of it.

Those that were tardy with their invoices and had one or two outstanding were able to submit them to the agency that took over all the contracts and so were paid something.

The agency in your case need your invoice to bill your client to help try to cope with their cash flow crisis by paying other, more urgent, debts.


You can now file claims with the County Court online. Do it tonight before you go to bed. It'll take about an hour, including the time to read up on the process.

Info about - County court bulk centre - money claim online

At least that way you stand a chance of getting something.

[CheeseSlice]

My agency just seems to have an incompetent finance department.

Quite often they'll miss an invoice, then pay the next two (the invoices paid are clearly marked on the remittance).
This happens about once per month. If I don't tell them about it, they'd probably not notice and carry on as normal until they do their tax returns.

I'm not really worried about their cash flow because they've also overpaid me before, not noticed this, then been unable to handle the refund or discount from the next invoice. I would give them an discounted invoice, and they'd just keep paying timesheets in full. Clearly just using a cumbersome self billing system.

Its a lot of hassle getting paid correctly, but they generally pay within 1 week of invoicing and I've not been out of pocket - yet.

[SorenLorensen]

The client is aware of the situation, and they are not in the slightest bit happy with the agency. Apparently the client has paid the agency.

Now here's a thing, I've been told that when I submit my next invoice, all outstanding payments will be made. This strikes me as very odd...why would they be wanting me to submit the next one? Why not just pay what is due now? My question is, am I better to submit the invoice, or to hold it back...what risks would I be taking by doing either option?

This is driving me round the bend. And agencies wonder why we don't like them sometimes!

[SueEllen]

Thanks, that threat is now on the table. Been assured payments will be made next week. I'm wary of that though, why can't they just pay now? If the money does not come in, then that's it finished. Will be looking to take legal action from that point.

Seriously make sure you tell ClientCo about the payment problems tomorrow.

At my current ClientCo and a previous one agents get dropped from lucrative contracts if they don't pay the contractors on time.

Even if your contract isn't lucrative i.e. they can place many people there, ClientCo can drop them for causing you trouble as they know they have to pay for your work. However ClientCo won't know if you don't tell them.

I should also point out now my client who was screwing me with payments did have the money. Their accounts department just decided not to pay my company until I got the director of the section involved after I downed tools.

[SorenLorensen]

Thanks, that threat is now on the table. Been assured payments will be made next week. I'm wary of that though, why can't they just pay now? If the money does not come in, then that's it finished. Will be looking to take legal action from that point.

[SueEllen]

Name them?

Also if you have two invoices outstanding and you are still on site you need to inform the client today that tomorrow you are not coming in and you will be back in once your outstanding invoices are paid in full.

Do it verbally and by email, adding the agent into the email. Make sure you put your contact number on the email.

Edited to say: I had to take that action last year and mine was a direct client.

[SorenLorensen]

Hi all,

Still having troubles with a particular agency not paying invoices. I've got two outstanding now, and I'm getting very concerned about the status of the agency. Is there any way of finding out if they have cashflow issues or are struggling?

Now I remember why I usually go direct...