Reply to: Client accidentally told me rate they pay - weird conversation.

[jamesbrown]

There are B2B companies who will provide payment factoring (I think this is the right term) where they will pay you immediately when shown a valid purchase order and then they get paid by your client, for 2% of the total or so. For a more typical small business with employee costs, this is very significant, clearly us rich contractors aren't bothered

Yes, you could sell the invoice to a factoring company but, as you say, unless there are cashflow issues, it's better to wait.

[d000hg]

Plus, of those that do, most do not pay within a few days of invoicing. More like monthly invoicing with 30-90 day payment terms.

There are B2B companies who will provide payment factoring (I think this is the right term) where they will pay you immediately when shown a valid purchase order and then they get paid by your client, for 2% of the total or so. For a more typical small business with employee costs, this is very significant, clearly us rich contractors aren't bothered

[psychocandy]

{{yawn}}

[stek]

Of course he is a moron, he hired PC!

Someone has to change the tapes....

[SimonMac]

So what's the story here? Your client manager is an utter moron? Anything else that stops this from being in general?

Of course he is a moron, he hired PC!

[Taita]

WHS

Some of the contractors on here are so righteous and so ******* naïve it beggers belief. Factoring is one of the biggest costs there is.
If an agency takes the risk, it could be ages before they are paid. My company has pushed companies out to two months after invoice, and that's on an invoice after a month (so effectively three). The contractors with the agency I used bitched because a couple of days after they got invoice they hadn't been paid by the agent.

One threatened to not come in. I told him not to waste my time as the hiring manager and if he says it again he'll be gone by the end of the day.

Too right, MF. These are the same contractors who would not dream of questioning Starbucks, M&S, Tesco, Thomas Cook or any other supplier's margin.....go figure!

[SlipTheJab]

My contract says I'm prohibited from discussing remuneration with anyone other than agency.

So how much are you on

[SpontaneousOrder]

Then you are an idiot.

You're so kind.

[SueEllen]

My contract says I'm prohibited from discussing remuneration with anyone other than agency.

Then you are an idiot.

If the clause is there, I get that clause removed completely or altered to state I can discuss it with relevant client staff.

Agencies who don't play games don't have a problem with it.

[SpontaneousOrder]

My contract says I'm prohibited from discussing remuneration with anyone other than agency.

[SueEllen]

WHS

Some of the contractors on here are so righteous and so ******* naïve it beggers belief. Factoring is one of the biggest costs there is.
If an agency takes the risk, it could be ages before they are paid. My company has pushed companies out to two months after invoice, and that's on an invoice after a month (so effectively three). The contractors with the agency I used bitched because a couple of days after they got invoice they hadn't been paid by the agent.

One threatened to not come in. I told him not to waste my time as the hiring manager and if he says it again he'll be gone by the end of the day.

Tosser.

[northernladuk]

If client said that to me they wouldn't have to wait for me to say it again....

You talk so much crap.

[jamesbrown]

Most companies don't pay contractors direct.

Plus, of those that do, most do not pay within a few days of invoicing. More like monthly invoicing with 30-90 day payment terms.

[MarillionFan]

Contractors here are all direct, and the agent just got a one off fee like they do with permies. They say they all get paid within a few days of invoicing; the company just treats them as the same as employees from the point of view of cash flow. So it can be done. Companies don't try not to pay their employees for three months (unless things are really going in the toilet) whilst still expecting them to turn up. I suspect the reason they do this with contractor's agents is: because they can.

It's a bit of a catch-22. Clients get used to the credit terms they get from agents and therefore contractors have to work through agents. And therefore clients have to use the agents as that's the only way to get contractors. Lose lose. Unless you're an agent.

Most companies don't pay contractors direct. The hassle isn't worth it. Easier to pay one company. But if they have want to it, it's better for the contractor.

[VectraMan]

Some of the contractors on here are so righteous and so ******* naïve it beggers belief. Factoring is one of the biggest costs there is.
If an agency takes the risk, it could be ages before they are paid. My company has pushed companies out to two months after invoice, and that's on an invoice after a month (so effectively three). The contractors with the agency I used bitched because a couple of days after they got invoice they hadn't been paid by the agent.

Contractors here are all direct, and the agent just got a one off fee like they do with permies. They say they all get paid within a few days of invoicing; the company just treats them as the same as employees from the point of view of cash flow. So it can be done. Companies don't try not to pay their employees for three months (unless things are really going in the toilet) whilst still expecting them to turn up. I suspect the reason they do this with contractor's agents is: because they can.

It's a bit of a catch-22. Clients get used to the credit terms they get from agents and therefore contractors have to work through agents. And therefore clients have to use the agents as that's the only way to get contractors. Lose lose. Unless you're an agent.