• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

  • You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
  • You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
  • If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

Previously on "Getting paid after two months"

Collapse

  • Bluenose
    replied
    Originally posted by stek View Post
    I'd say you raise an invoice 1st Jan, and agent month end is 31st Jan, you'd be paid 28th Feb.
    Yep, perfectly possible but I just go from my own experience in that on a 30 day payment terms, if I submit an invoice I usually get paid a month (or less) later.

    First gig was weekly invoice and payment terms (10 days from invoice to payment). That was with Eurobase, very professional outfit those guys.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by pjclarke View Post
    This is unusual, right? Its normally 30 calendar days.
    Forget 'normal.' Read what it says in the contract carefully and if there is any ambiguity speak to the agent to get it cleared up.

    You know where assuming stuff gets you....

    Leave a comment:


  • 7specialgems
    replied
    Originally posted by Roby View Post
    This is my first post so allow me to describe my current situation. I started working as a contractor the 17th November 2014 for an automotive company here in the U.K. At the beginning I was getting paid with a "stepper plan" which means I would have worked for two weeks, raised the invoice the third and get paid the forth. Now I am supposed to be paid every month. For instance: I will have to raise the invoice for the month of January by the 7th February and get paid the 2nd or 3rd March. That would leave me practically with no income for two months. All my other colleagues who are contractors with other agencies get paid the week after they have raised the invoices for the past month. Since I have been paid the 22th December and it will be very difficult to subsist until March, is there something I can do to get paid on February for the month of January? I know that the company has already paid the agency for the 1st, 2nd and 3rd working week of January.

    Thanks in advance!

    P.S. Quick question: My colleagues who have my same exact experience and degree are getting paid more than me (although performing a different type of job, mine is less technical and more administrative), does that depend on the agency or on the company (client)?
    Sounds like you have started contracting without cashflow to tide your expenses over until you begin to receive your accounts payable.

    Lesson learned son. Among other options, you could go out and get yourself a 0% credit card to live on as best as possible until your money starts coming in.

    As for payment terms, 30 days supplier terms isn't uncommon for a new engagement, although as you've seen from some of the replies, seasoned contractors negotiate this down significantly right from the first contract.

    You ought to get yourself into the position where your salary is paid for by the takings of previous months, not the current month.

    If you don't understand how cashflow works, go find out.
    Last edited by 7specialgems; 28 January 2015, 12:47.

    Leave a comment:


  • pjclarke
    replied
    As an aside, I was just about to fire off an irate email chasing payment for some training I delivered at the beginning of December. The contract was set up at short notice and I didn't scan it too closely; vaguely noticed '30 days' somewhere in the payment terms text. The invoice was submitted on the 19th Dec, so I figured it is a week and a half overdue. I copy-pasted the para from the contract and in doing so noticed it actually states 30 working days.

    Which, once you factor in weekends and Christmas, means they still have 2 days to pay me, >6 weeks after the invoice and nearly two months since I did the work.

    This is unusual, right? Its normally 30 calendar days.

    Leave a comment:


  • BolshieBastard
    replied
    Absolutely incredible.

    Leave a comment:


  • sal
    replied
    Rookie mistake to accept payment terms like that and since your main question has been already answered i will give you some pointers to avoid a follow up rookie mistakes:

    - If you don't have sufficient funds to survive for 2 months without income, you should have never started contracting in the first place. Keep this in mind for future reference.
    - If you are using ltd. make sure you learn how to manage yours and YourCo finances separately as you are 2 separate entities and get an accountant
    - If as i suspect you are currently drawing all of YourCo income to your personal bank account it's best to account for it as a Director Loan for the time being and sort it out a month or two down the line with your accountant

    Last but not least read all of the newbie threads and useful links in this forum ASAP

    Leave a comment:


  • Roby
    replied
    Thanks again Bluenose.

    I apologise if it seems that I am wasting your time. English is not my native language and this is my first job so I thought it would have been better to ask people that are far more experienced than me.

    Leave a comment:


  • stek
    replied
    Originally posted by Bluenose View Post
    It means that if you submit an invoice with matching timesheets on 1st Jan, you would be generally be paid on 30th Jan.

    Is there a clause in the contract which means they only pay if they get paid by the end client ?
    I'd say you raise an invoice 1st Jan, and agent month end is 31st Jan, you'd be paid 28th Feb.

    Leave a comment:


  • Bluenose
    replied
    Originally posted by Roby View Post
    Thank you Bluenose.

    Yes, there is.

    Well I guess that answers my first question...
    No problem, nothing wrong with you asking for an update from the agent (if you have one). At this stage I would usually be escalating the problem via the agent who should be escalating it internally with the Finance team.

    If you are direct then escalate it through your line manager, engagement manager and HR contact.

    Its an annoying trend on contracts (not being shielded financially from the end clients) and having being burnt in the past in a similar fashion I usually get the agencies to amend the contract or I refuse the role.

    Get yourself into a stronger financial position first, make sure you have contacts lined up for other roles and then negotiate an increase with current client on contract renewal or be prepared to walk.
    Last edited by Bluenose; 27 January 2015, 22:04.

    Leave a comment:


  • Scratch It
    replied
    Originally posted by Roby View Post
    Thanks for the reply Scruff.

    A part from:
    "Interim Invoicing: Monthly as per attached Invoice Payment Schedule."

    In the Terms & Conditions it is also stated:
    "The company (agency) will pay the contractor on 30 days terms, subject to the proper and timely receipt of the Job Sheets and Invoice."

    Does that mean that I will be getting paid 30 days after the invoice has been raised or that I will be paid on a 30-day basis?
    The reason why you are going to get snarky responses is that you haven't even completed basic research on what it means to run a business. You're asking a forum of people that, almost by definition, are independent and self reliant people whether '30 day terms' means 30 days after the invoice is raised. The top result on google for '30 days terms' is a clear and thorough explanation of what 30 days terms means.

    http://lmgtfy.com/?q=30+day+terms

    Leave a comment:


  • Roby
    replied
    Thank you Bluenose.

    Yes, there is.

    Well I guess that answers my first question...

    Leave a comment:


  • Pamplemoose
    replied
    Originally posted by Roby View Post
    Thanks for the reply Scruff.

    A part from:
    "Interim Invoicing: Monthly as per attached Invoice Payment Schedule."

    In the Terms & Conditions it is also stated:
    "The company (agency) will pay the contractor on 30 days terms, subject to the proper and timely receipt of the Job Sheets and Invoice."

    Does that mean that I will be getting paid 30 days after the invoice has been raised or that I will be paid on a 30-day basis?
    It means the former. YourCo raises an invoice and presents it to the Client - they cough up 30 days later.

    Leave a comment:


  • Bluenose
    replied
    Originally posted by Roby View Post
    Thanks for the reply Scruff.

    A part from:
    "Interim Invoicing: Monthly as per attached Invoice Payment Schedule."

    In the Terms & Conditions it is also stated:
    "The company (agency) will pay the contractor on 30 days terms, subject to the proper and timely receipt of the Job Sheets and Invoice."

    Does that mean that I will be getting paid 30 days after the invoice has been raised or that I will be paid on a 30-day basis?
    It means that if you submit an invoice with matching timesheets on 1st Jan, you would be generally be paid on 30th Jan.

    Is there a clause in the contract which means they only pay if they get paid by the end client ?

    Leave a comment:


  • Roby
    replied
    Thanks for the reply Scruff.

    A part from:
    "Interim Invoicing: Monthly as per attached Invoice Payment Schedule."

    In the Terms & Conditions it is also stated:
    "The company (agency) will pay the contractor on 30 days terms, subject to the proper and timely receipt of the Job Sheets and Invoice."

    Does that mean that I will be getting paid 30 days after the invoice has been raised or that I will be paid on a 30-day basis?

    Leave a comment:


  • northernladuk
    replied
    Sometimes I wonder how some people manage to draw their next breath......

    Leave a comment:

Working...
X