Reply to: Typical payment period from agency

[DodgyAgent]

I ALWAYS do that, and companies house for any debentures.
I guess I was looking more for a low cost credit check recommendation.

You could do a trial with Duedil

[Lance]

Google to begin with. name of company and name of directors

I ALWAYS do that, and companies house for any debentures.
I guess I was looking more for a low cost credit check recommendation.

[DodgyAgent]

Where's a good starting point to do a check on an agency?
I've never done one, and never been let down, but will do in the future.

Google to begin with. name of company and name of directors

[Lance]

If you haven't credit checked a potential agency you can't even begin to identify the risk, let alone negotiate terms to accurately reflect and negate it.

Where's a good starting point to do a check on an agency?
I've never done one, and never been let down, but will do in the future.

[Safe Collections]

Not unheard of unless you can negotiate better.
I would recommend credit checking the agency, just in case they have money problems.

Given the state of the economy these days, I always insist on a weekly payment.
i.e. work one week, invoice Monday, paid Friday.

That limits me to the potential exposure of "only" losing one weeks money.
The risk of losing money, if an agency goes under is very real, I've heard of people losing £20K+ before.

This +1

We regularly talk to contractors who are in this exact position, they get a gig from an agency and do zero due diligence on the agency or its directors/shareholders.

Generally the first indication these contractors have that anything is wrong is when the final invoice goes unpaid... Only then do they actually conduct any due diligence and they'll often find obvious warning signs of a poor payment history or "sharp" business practices

If you haven't credit checked a potential agency you can't even begin to identify the risk, let alone negotiate terms to accurately reflect and negate it.

[DodgyAgent]

Ah.......there's a real surprise.....

If you don't ask, you don't get, blow me down with a feather

[MrMarkyMark]

I have about 60 contractors and if they ask i will pay them on terms that suit them. We factor anyway so payment is pretty quick

Ah.......there's a real surprise.....

If you don't ask, you don't get, blow me down with a feather

[DodgyAgent]

Very true, although looking at some of the replies I have read on here.......

Well, at least someone, albeit an agent, has finally got the real issue at hand.
I can't believe the amount of contractors, here, that don't fight to try and improve their terms.

Dodgy QQ for you, do all your contractors get the same payment terms? I know for a fact that some agencies operate a 2, or more, tier system and that not everyone gets treated the same.

When I have been truly direct I have had 90 days payment terms, this was for a large blue chip, so I had to suck it up.

I have about 60 contractors and if they ask i will pay them on terms that suit them. We factor anyway so payment is pretty quick

[LondonManc]

Sorry but that is bollocks, you have a legitimate claim once the terms of your contract have been honored, if they say a month you have to wait a month.

I think you're missing the point completely as to what both MMM and I said; the timesheet signed means that the money is owed, not necessarily that it is due, which is what the payment terms deals with. Two different things

[SimonMac]

As soon as I've got a timesheet signed, I've got a legitimate claim on that cash - it is owed.

Sorry but that is bollocks, you have a legitimate claim once the terms of your contract have been honored, if they say a month you have to wait a month.

[MrMarkyMark]

Spot on Marky McMark face . This comes from the "janet and John" guide to risk!

Very true, although looking at some of the replies I have read on here.......

Well, at least someone, albeit an agent, has finally got the real issue at hand.
I can't believe the amount of contractors, here, that don't fight to try and improve their terms.

Dodgy QQ for you, do all your contractors get the same payment terms? I know for a fact that some agencies operate a 2, or more, tier system and that not everyone gets treated the same.

When I have been truly direct I have had 90 days payment terms, this was for a large blue chip, so I had to suck it up.

[DodgyAgent]

Not unheard of unless you can negotiate better.
I would recommend credit checking the agency, just in case they have money problems.

Given the state of the economy these days, I always insist on a weekly payment.
i.e. work one week, invoice Monday, paid Friday.

That limits me to the potential exposure of "only" losing one weeks money.
The risk of losing money, if an agency goes under is very real, I've heard of people losing £20K+ before.

Spot on Marky McMark face . This comes from the "janet and John" guide to risk!

[Lance]

of course if you don't like month long payment terms you could always factor the invoices to help cash flow.

But IMO if you're cash flow is that tight that you can't wait 2 or 3 months then you're in the wrong business, or not charging enough.

[MrMarkyMark]

As others have already said 1+1 months is not uncommon. No one likes it, but it's next to impossible to negotiate something different that the agency default payment terms/runs. Definitely not something worth jeopardising a contract over, unless it's a dodgy agency.

Personally i don't care if i get the money 2 or 3 months after i have done the job as long as i get it.

My last couple of contracts where:
1m invoice + 1m payment
1m invoice + 1w payment
friday invoice + payment by next friday
1w invoice + 1m payment
friday invoice + payment by next friday

HTH

A right mixed box of frogs there, right enough.

Its funny though, when I returned to this client I ended up going through the very people I was arguing with before, regarding payment terms.
They, too, have started to do weekly now, so the argument, with exactly the same people, was about the contracts terms this time around.

They are probably bloody sick of me TBH.

However, I did get support from Senior Management that said they needed me to be happy with the contract, so they "greased" the wheels.

It was very refreshing

[sal]

As others have already said 1+1 months is not uncommon. No one likes it, but it's next to impossible to negotiate something different that the agency default payment terms/runs. Definitely not something worth jeopardising a contract over, unless it's a dodgy agency.

Personally i don't care if i get the money 2 or 3 months after i have done the job as long as i get it.

My last couple of contracts where:
1m invoice + 1m payment
1m invoice + 1w payment
friday invoice + payment by next friday
1w invoice + 1m payment
friday invoice + payment by next friday

HTH