Reply to: Calls from dissolved agencies?

[SlipTheJab]

It's ok come April we'll be on PAYE with these agencies, that puts my mind at rest, thank you Gideon...

[Bee]

Hi Guys,

I have been contracting in the past 5 years, and about 2 years ago I started checking the agencies contacting me on Companies House/Companycheck. Originally I was only checking their finances to avoid those who would have me as one of their two contractors. I was shocked how many of them are not even in business.
These days if I get a phone call from an agency the first thing I check on their website is their company number. Those who are not showing a company number could be PLCs, but unlikely. In these cases I just ignore everything from them.

I am curious how you deal with agencies you never heard of before? Do you guys also check whether they are legitimate, properly operating businesses?

What do you think the purpose of these people could be? Are they running some sort of scam? Or is this the new way of phishing for info, under someone else's company name?

I check after the interviews, and never put personal information on my CV.

[Safe Collections]

Take it from us, if you aren't managing your risk and researching your client/agency then sooner or later you will lose money.

A credit check will help answer the three questions every contractor needs to know about a potential client/agent:

1. Who/what are you dealing with?
2. Can they afford to pay your invoice?
3. Will the pay you promptly?

A dodgy agency with a fancy website and designer offices may have a string of unpaid CCJs against it and if you haven't already purchased a report or done some digging, the first indication you will have that something amiss is when your invoice doesn't get paid.

Investigating your client/agent will never completely negate the risk involved in offering your services on credit, but it will reduce this risk considerably and is, in our opinion, the bare minimum in due diligence that a contractor should be aiming for.

As far as insurance goes, this can be of assistance but should not be relied upon to secure full payment. The IPSE/Abbey policy included in membership only covers the first £7.5K of any claim, it is only applicable for agency insolvency (so if you are direct you are out of luck) and as far as we understand it has a maximum claim cap per agency that could reduce any payout dependent on the number of claims.

[MrMarkyMark]

Hasn't happened so far in last 7 yrs.

How about trying to manage your risk / exposure, like any other business.
No one is too big to fail, remember Enron?

Also cojak if there is any guaranteed way you won't lose your invoice money pls share with us too.

What Cojak says.

[SlipTheJab]

Yeah you have to have no brain to want to join....

The insurances make it a no brainer, agree they're pretty useless at their primary goal, IPSE, should have been called WOOPSY!

[stek]

Or join IPSE+, it really is a no brainer

Yeah you have to have no brain to want to join....

[SlipTheJab]

Yes, make sure that the agency isn't dodgy BEFORE you start working on the contract.

Or join IPSE+, it really is a no brainer

[cojak]

Hasn't happened so far in last 7 yrs. And don't think it happens too often with MNC's and PSU's.
Also cojak if there is any guaranteed way you won't lose your invoice money pls share with us too.

Yes, make sure that the agency isn't dodgy BEFORE you start working on the contract.

[jkdaniel]

Hasn't happened so far in last 7 yrs. And don't think it happens too often with MNC's and PSU's.
Also cojak if there is any guaranteed way you won't lose your invoice money pls share with us too.

He's a newbie, just wait till he sees the last month's invoice going down the Suwannee...

[MicrosoftBob]

Small specialist agencies that have been in business a long time are usually fine, although if their business address are serviced offices or their home start to dig a lot deeper before you sign anything

[eek]

I did the same when I was negotiating a rate. I wanted £50 a day more and I told them I would get Andy involved if they didn't agree. The lady laughed, knocked my rate down by another £20 from the original offer and told me to take it or leave it

Wouldn't do it as part of a rate negotiation. If you have a problem or contract issue the name will get the issue escalated to someone who can sort it...

[northernladuk]

I only credit check when I need to. I doubt S3 has a problem paying the bill. I think they are slightly more scared I name check Andy Hallett when I hassle them

I did the same when I was negotiating a rate. I wanted £50 a day more and I told them I would get Andy involved if they didn't agree. The lady laughed, knocked my rate down by another £20 from the original offer and told me to take it or leave it

[Andy Hallett]

I only credit check when I need to. I doubt S3 has a problem paying the bill. I think they are slightly more scared I name check Andy Hallett when I hassle them

Glad to be of service.

[cojak]

You must be joking, right .
I have personally known 2 people that lost 2 months of money, when an agency went bust.

He's a newbie, just wait till he sees the last month's invoice going down the Suwannee...

[MrMarkyMark]

I wouldn't spend too much of time researching on the financials of the Agencies. As long as they can secure me an interview telephonic/face-to-face.

You must be joking, right .
I have personally known 2 people that lost 2 months of money, when an agency went bust.