Reply to: Start up agency

[Manic]

Thanks all for comments. I had two other irons in fire which both made offers. So boomed

[FarmerPalmer]

Are you an IPSE+ member ?

https://www.ipse.co.uk/about-us/busi...ption-services

[missinggreenfields]

Are you an IPSE member? thought they provided some cover, only accept weekly terms with payment in 7 days. Can you arrange to go direct if the agency goes bust? If you have nothing else to walk into does it really matter if you lose a weeks money as opposed to being on the bench?

+1

Short payment terms are a must in this situation, and insurance cover that will pay out if the agency goes bust (whether it covers everything or not) is always good. I'd also look for short notice period so that if you get worried about things going pop then you can get out quicker and not end up running up a larger credit with them.

If you have nothing else to do, what is there to lose?

[LondonManc]

High risk.

Secure the gig, don't mention the credit check until you discuss the terms.

Make sure the contract is reviewed and make sure payment terms are good.

Find out the chain - client - agent - yourco or client - uberagent - agent - yourco

if uberagent is s3, or some other big co, see if you can arrange to go direct with them and have them (s3) pay your agent a finder fee or something to manage them out of the equation.

Cross bridges when you get to them and all that.

[SimonMac]

It will probably be a single man recruiter company who'll run you through a larger agency. I'm with something similar at the moment where the recruiter is a different company to the agency who I have the contract with.

+1

But seeing as you haven't been offered the role yet the situation is moot for now.

Any of this talk will just spook the pimp and the interview will dry up, better to wait till you have seen an actual contract before guessing what might happen

[Lance]

All

I've been offered an interview for what on the face of it would appear to be a nice challenging role in the smoke. Day rate is decent but not huge. The agent appears knowledgeable and is personable.

Looking at the agency itself, it would appear to be a 1 man band plus employee located in an office share. No website and not a member of REC. I've looked over the abbreviated accounts for the 6 years the company has existed and must assume that salary is taken as no dividends shown, tax liability is small or nil. Apart from one year cash in bank is not much more than my monthly outgoings. There is an outstanding debenture to a factoring company starting 2011.

Now I'm not stupid, this all means hand to mouth existence, and a real risk that the company goes pop. I'm not yet aware of whether this might be monthly or weekly invoicing so worse case scenario I could be balls deep for 2 months invoices plus train expenses and accommodation.

I have alternative irons in fire which will mean WFH or expensed outings, however this role would be a significant enhancer. I could also be thinking that I have the interview as no one else would be stupid to work through them.

Thoughts?

It will probably be a single man recruiter company who'll run you through a larger agency. I'm with something similar at the moment where the recruiter is a different company to the agency who I have the contract with.

[MrMarkyMark]

And I thought we were all family.

Thanks all for opinions, I will be ensuring head rules heart.

Oh we are, just a very dysfunctional and a little strange one.

[BigRed]

Are you an IPSE member? thought they provided some cover, only accept weekly terms with payment in 7 days. Can you arrange to go direct if the agency goes bust? If you have nothing else to walk into does it really matter if you lose a weeks money as opposed to being on the bench?

[Manic]

And I thought we were all family.

Thanks all for opinions, I will be ensuring head rules heart.

[MrMarkyMark]

Thoughts?

Yep, I wouldn't have even gone as far as asking a load of strangers on an Internet forum.

Avoid.

[DodgyAgent]

Maximum Risk - Significant Issues. 0 credit.

There is a deficit in both capital employed and shareholders funds.

There has been a very significant fall in shareholders' funds over the latest accounting period.

In our view this company is a very high credit risk. We therefore recommend you make full & detailed enquiries before offering credit. Add to monitoring list.

[NotAllThere]

Tell them you'll do it but only payment weekly, in advance. Make the agent take the risk. If he's on the level, unless he finds a gullible fool, he'll do what he can to make the contract work.

[SueEllen]

Am leaning that way too Mal. Might have to be a difficult phone call Monday

It's not difficult - you just tell them you have done a credit check on them and do not wish to do business with them.

I've told agencies to go away when looking at Companies House I can see they have loans outstanding and large dividends almost equal to their turnover.

[Manic]

Am leaning that way too Mal. Might have to be a difficult phone call Monday

[malvolio]

Why would you want to trust your income and effectively extend significant credit to a non-viable company? You're supposed to be in business and as a director to minimise the risks to your company. Walk away. Quickly...