Newbie- Agency Payment Terms

[Wanderer]

I know someone who managed to get 3 week credit terms with that agency but he reckons it was escalated all the way to the finance director (so the agent says anyway) and it was was getting blood out of a stone.

I guess I've learnt a lesson - to always ask for details of payment terms at the same time as agreeing the rate. Seems so obvious now I've written it down!!

We live and learn

[chilihead]

Thanks for the responses.

I had no luck with my umbrella company regarding advance payments and I won't get any expenses back until the timesheets are processed. I will be able to submit timesheets weekly, and therefore get paid weekly, there is just a delay of 5 weeks before the first payment. After two months of not working it's a painful delay. I've managed a small overdraft extension but the rest is credit cards/friends help.

I tried haggling with the recruitment consultant - risk was the word I kept repeating - but they didn't budge (Alexander Mann - I note there are several threads about their payment terms on this forum).

I have received a letter of intent which details the rate, working hours, payment terms, contract length, notice period. The actual contract, however, is pending my SC and references.

I guess I've learnt a lesson - to always ask for details of payment terms at the same time as agreeing the rate. Seems so obvious now I've written it down!!

[Zippy]

I agree with haggling with the agency ("I love to accept but can't afford to extend that much credit ... riski...expenses...blah...blah").
Alternatively, does your umbrella co offer an advance on your (billed) salary? I know of one that used to.

[Boney M]

If you have deffo been given the gig, then tell the agency you would love to accept but cannot go so long without payment bearing in mind the additional cost, ask the chump to speak to his Finance Director. They normally will because after the client has said they want to offer you the job they wont want to piss the client off.

Oh and next time put some money away for these eventualities, not uncommon to go from weekly, to 4 weekly to monthly payments

[jmo21]

At the very least push for weekly billing.

So your first invoice will be at end of week 1, paid in week 5.

In effect you'll be getting weekly payments from week 5 on.

[SueEllen]

Negotiate.

Ask the agency why their payment terms are so long and if they have cash flow issues.

Both large and small agencies can pay much quicker if you ask.

In fact I only deal with small agencies who pay within a week of invoicing....

[tarbera]

Get an overdraft

Hi all

I'm new-ish to contracting. I'm with an umbrella company and had 18 months on one assignment where I was paid monthly - the timesheet was submitted at the end of the month and I received payment the following week. That project was completed at the end of November. After two months of not working (I stayed with umbrella company and didn't claim JSA), I've just been offered a three month assignment away from home only to find the agency payment terms are 30 days from receipt of the approved timesheet submission - so it'll be five weeks before I receive my first weekly payment. The notice period for the assignment is a week (both sides).

I'll struggle to afford the travel and accommodation for the assignment plus pay my mortgage/bills for those 5 weeks and the agency are refusing an interim payment to tide me over. My last agency did, however, offer a mid-month payment to tide me over at the start of my last assignment. The notice period there was 2 weeks from the client, 8 weeks from me.

I'd welcome some input from those with more experience regarding agency payment periods - do all agency payment terms vary so much? Has anyone else struggled financially at the start of a contract?

Thanks in advance

Agent will not care about your issues its business, get an overdraft, show bank manager the contract

[DirtyDog]

Do all agency payment terms vary so much?

Yes.

I've had them range from invoice Friday, paid the following Wednesday through to invoice at the end of the month and get paid 28 days later.

That's the nature of the beast - negotiate or find something else to do.

[chilihead]

Hi all

I'm new-ish to contracting. I'm with an umbrella company and had 18 months on one assignment where I was paid monthly - the timesheet was submitted at the end of the month and I received payment the following week. That project was completed at the end of November. After two months of not working (I stayed with umbrella company and didn't claim JSA), I've just been offered a three month assignment away from home only to find the agency payment terms are 30 days from receipt of the approved timesheet submission - so it'll be five weeks before I receive my first weekly payment. The notice period for the assignment is a week (both sides).

I'll struggle to afford the travel and accommodation for the assignment plus pay my mortgage/bills for those 5 weeks and the agency are refusing an interim payment to tide me over. My last agency did, however, offer a mid-month payment to tide me over at the start of my last assignment. The notice period there was 2 weeks from the client, 8 weeks from me.

I'd welcome some input from those with more experience regarding agency payment periods - do all agency payment terms vary so much? Has anyone else struggled financially at the start of a contract?

Thanks in advance