Payment terms

[SpontaneousOrder]

I got some better terms.

Cheers.

[psychocandy]

Im on 30 day - not an issue for me...

They pay on time so no big deal. Admitedly, if it was running late all the time on this 30 days I might have an issue.

[SpontaneousOrder]

State your terms. Be weak about it and you achieve nothing. It's a little odd that someone with a 2yr 2k+ posting history is asking this.

Most of my posts are are arguing about economics, feminism, or hands-free dumps.
Plus I've never have payment terms like this before.

As for self-billing. A formal self-billing agreement is needed (VAT rules). Some people are OK with it, personally I wouldn't touch with a barge pole.

Thanks for this. I'll look into it.

[Contreras]

I've not yet accepted an agency contract with greater than 14-day payment terms and weekly invoicing. Agencies may struggle to meet those terms - bank holidays, missed invoicing window, etc. - and I will let it slide in those cases but it does give you a head start in chasing the debt if they don't come good on the next payment cycle.

State your terms. Be weak about it and you achieve nothing. It's a little odd that someone with a 2yr 2k+ posting history is asking this.

As for self-billing. A formal self-billing agreement is needed (VAT rules). Some people are OK with it, personally I wouldn't touch with a barge pole.

[SueEllen]

Is this something that is generally possible then? I.e. should I throw my weight around or be more gentle?

Of course, I won't be holding you personally responsible if your advice turns out to be bad in this particular instance So feel free to give an honest opinion.

I've asked an agency before who had monthly invoicing but then took 6 weeks to pay the invoice, what was the reason they had such extended payment terms. They agreed to pay me within 14 days (normally 10) after I invoiced them.

Other people asked the same agency but dealing with a different agent if they could be paid sooner. They were allowed weekly invoicing with 6 week payment terms.

The majority of the agencies I've dealt with pay up within 7-14 days of invoicing them.

The only companies who are difficult to negotiate with are direct clients.

[northernladuk]

Well you've got two choices, ask them about it or don't. Balls in your court now.

[SpontaneousOrder]

Ask them straight to change their payment terms.

It does help if you know the client always settles their invoices then you can do this.

Is this something that is generally possible then? I.e. should I throw my weight around or be more gentle?

Of course, I won't be holding you personally responsible if your advice turns out to be bad in this particular instance So feel free to give an honest opinion.

[Boney M]

If you've got the gig tell them you need to change the payment terms

[SueEllen]

Ask them straight to change their payment terms.

It does help if you know the client always settles their invoices then you can do this.

[SpontaneousOrder]

I'd don't think your PCG+ is going to be good for anything lol...

You mean they are self billing?

I was thinking of the insurance incase they go belly-up before I get paid.

The general info they sent said no need to send an invoice, and sounded a bit like self-billing. But the contract which i've since read says I must send an invoice.

We'll see. If I get them to acknowledge that I'm not opted out (there's been no conversation or paperwork except a single "Contractor opted out | YES" snuck into the assignment schedule) and cannot legally be so at this point, then I could suggest that that makes me less bothered about the tulipty payment terms (i.e. at least my risk exposure to the end client is reduced).

[northernladuk]

I'd don't think your PCG+ is going to be good for anything lol...

You mean they are self billing?

[SpontaneousOrder]

Cheers.
I'll also remind myself of what my PCG+ may or may not offer in terms of reducing the worry.

They do a mid-month payment if you miss the deadline at the end of the invoicing period, so that makes me wonder if they could pay me on 2 week terms / monthly invoicing. Which is a little better.

They'd probably be reluctant though as apparently I don't even need to send an invoice (although I still can) which makes me think its a largely automated process which my request to change would **** up.

[northernladuk]

P.s. if you went direct it could be up to 90 days so it's not as bad as it could be.

[northernladuk]

I've been on that for a couple.of years now with three different clients and agents. One processing cockup meaning payment was two weeks late but appeared as soon as I complained. It does expose you to some risk but I would imagine the split of people who didn't get paid vs those that did would on the same terms would be tiny.

The terms aren't the best but IMO not a deal breaker but not enough info on possible risks to dig into it any further.

I wouldn't be overly worried about this if Arrow are a decent size and your client is fairly well known.

[SpontaneousOrder]

I know there have been several threads about this. I've had a look through them.

So I just wanted to ask for some specific opinions...

New gig, Arrows Group, monthly invoicing with payment at the end of the following month. I.e. between 8 and 4 weeks of credit/risk. Averaging at 6 weeks.

I thought my previous role was bad with 21 days on monthly invoices.

Anyway, while being less than ideal, do you guys think it's ridiculous enough to flat-out reject? Or is it fairly usual even if it could be better?

Not credit checked Arrows Group yet, but I'm assuming they're big enough to not worry. Only worry is the end client product isn't actually monetised - they are funded by a parent company.

No mention of opt-out yet, but expecting it to turn up with the contract (currently they've sent me some paperwork, but not the contract). Even though it may technically be unenforceable I don;t think it's been tested yet? Nor do I fancy putting it to the test myself.