First invoice payment

[craig1]

Well, I am going to get paid but it's a good job that I did chase early as they hadn't set up the contract on their systems yet and I wouldn't have been paid. I'll be paid one day late but at least I know that it is going through the BACS system.

I see absolutely no problem asking for clarification that I am going to get paid for the first invoice in a new contract with a new agency. Based on years of experience with agencies, it would be startlingly naive for me to assume that an agency is going to get everything right first time and I will be paid on time. I'm not questioning their ethics or intention to pay, just acknowledging that sometimes things go wrong and getting them dealt with early.

[xoggoth]

Think I'd let a day or two pass on the odd occasion but be very wary if any agency or company makes a habit of late payments, it can be a sign of financial problems. Happened to me where I had to chase a client for payment on a couple of occasions and a few months later I lost over £1000 when they went bust.

[VectraMan]

Turns out they were missing some contract paperwork from the client and there internal rules said I couldn't be paid until they had it.

I've been there several times. One agent didn't pay three invoices because they hadn't received the contract back from the client, and then made a big deal out of doing me a favour in authorising the payment.

One small factor that makes me think the people who came up with IR35 may have had a point is contractors' exposure to risk of non payment. I.e. there is none, at least not really, and not significantly different to that of an employee. Whereas a real business deals with late payers and cash flow problems all the time. It's part of what running a business is.

[lje]

Well I think a little reminder doesn't do any harm. I work direct with my client and for the fist 6 months or so they would pay within 2 weeks, even though we have 30 days agreed. Over the last year though they have often been late. Not a problem with their liquidity - just their organisation as they now have lots more contractors. Once they paid one of my invoices twice - which sounds nice but took quite a bit of effort to sort out.

Now I chase my invoice one week before it is due to remind them when it is due and I rarely have an issue.

[SueEllen]

A payment term is most definitely a target, any AP controller worth their salt will be looking to pay at the best terms for their business.

Which is as late as possible for large business and HM Government Agencies.

There as small businesses know if they screw people over they are likely to get burnt themselves.

[JamJarST]

if I'm on 30 days terms and it's the first invoice then I usually send a polite reminder a few working days before payment is due.

30 days should be a limit not a target

Well if all my creditors, both personal and business did that to me I would politely tell them to take a running jump Do you take calls from your bank reminding you the mortgaage is due or the council 5 days before the council tax should be paid ???

A payment term is most definitely a target, any AP controller worth their salt will be looking to pay at the best terms for their business.

[SueEllen]

I think I'd wait and see if the payment is made before coming on here and having a rant about something that hasn't happened yet

Agreed.

It's when they are late with 2 payments you need to find out what is the problem.

With agencies they shouldn't be late with payments except if there is an issue with how their and your banks process BACS. However it this happens they will always be late by one or two days not weeks.

[Acme Thunderer]

Firm but polite

Had it happen to me. Due to be paid weekly on a Friday and wasn't.

Phoned the agency accounts department on the Friday afternoon saying I hadn't been paid when due to and asking was there a problem. Turns out they were missing some contract paperwork from the client and there internal rules said I couldn't be paid until they had it.

I phoned my agent and told him the story and reminded him that the contract was between My Ltd and the Agency. If they were short of something from client then that should not affect them paying me.

Was added to that days payment-run and received money couple of days later.

[Spacecadet]

You start chasing for money before it is due

if I'm on 30 days terms and it's the first invoice then I usually send a polite reminder a few working days before payment is due.

30 days should be a limit not a target

[northernladuk]

I think I'd wait and see if the payment is made before coming on here and having a rant about something that hasn't happened yet

This is more my approach. I also like to think I could be reasonable depending on circumstance of the payment being late. This doesn't mean roll over when they constantly screw up but the first payment is nearly always a problem from my experience. Little things like the BAC's going out on the friday like last month and not appearing until the 1st (Monday) just due to the weekend I can suffer which I know others won't etc.

[craig1]

I think I'd wait and see if the payment is made before coming on here and having a rant about something that hasn't happened yet

Wasn't a rant... just a hypothetical train of thought brought on by experience of agencies! Until I've a few on-time payments under my belt, I'm always excessively paranoid about agencies messing up payment.

[Wobblyheed]

I'm due payment on my first invoice at my new contract on Monday so, following my usual process for a new agency, I contacted them today to see if the BACS payment had been made as today's the deadline for BACS to ensure I receive it on time.

I have absolutely no tolerance for late payment and if I don't get payment before COB Monday then I'll be starting my "late payment" process. I have some sympathy for the smaller agencies due to not many people covering the AP role but the larger agencies have no excuse.

That had me thinking, what if the agency didn't pay on time for this first invoice? It would be interesting to see what people would do and how long they'd go before withholding labour for non-payment. Personally, I'd go either one week over or two invoices unpaid before I told the client that I was going to withdraw my services for non-payment.

I think I'd wait and see if the payment is made before coming on here and having a rant about something that hasn't happened yet

[JamJarST]

I'm due payment on my first invoice at my new contract on Monday so, following my usual process for a new agency, I contacted them today to see if the BACS payment had been made as today's the deadline for BACS to ensure I receive it on time.

I have absolutely no tolerance for late payment and if I don't get payment before COB Monday then I'll be starting my "late payment" process. I have some sympathy for the smaller agencies due to not many people covering the AP role but the larger agencies have no excuse.

That had me thinking, what if the agency didn't pay on time for this first invoice? It would be interesting to see what people would do and how long they'd go before withholding labour for non-payment. Personally, I'd go either one week over or two invoices unpaid before I told the client that I was going to withdraw my services for non-payment.

You start chasing for money before it is due

[craig1]

I'm due payment on my first invoice at my new contract on Monday so, following my usual process for a new agency, I contacted them today to see if the BACS payment had been made as today's the deadline for BACS to ensure I receive it on time.

I have absolutely no tolerance for late payment and if I don't get payment before COB Monday then I'll be starting my "late payment" process. I have some sympathy for the smaller agencies due to not many people covering the AP role but the larger agencies have no excuse.

That had me thinking, what if the agency didn't pay on time for this first invoice? It would be interesting to see what people would do and how long they'd go before withholding labour for non-payment. Personally, I'd go either one week over or two invoices unpaid before I told the client that I was going to withdraw my services for non-payment.