Alternatives for getting paid

[northernladuk]

Best make sure you pay yourself the minimum for a couple of months and get yourself a solid warchest now.

[rvg400]

In the end, didn't need to bill directly as I got an alternate (and better offer) with a different client where the agent will pay me weekly 2 weeks in arrears.

Really grateful for all the replies, even those questioning my financial position!!!

[craig1]

Just out of interest on this. My nice new consultancy piece is with the NHS on a direct contract with them, weekly bill/14 day terms. Three invoices in and so far they've been paid on weekly terms, last Friday's invoice was paid today.

It takes confidence to negotiate terms beyond the client's default but it's certainly not unachievable. The negotiating tactic I use is the Columbo one "just one more thing" after we reach agreement. It's an old psychological sales trick, you seal a deal then address another point that's a nice-to-have and won't jeopardise the main agreement.

[craig1]

Weekly bill/weekly pay is not unheard of in direct work. My standard terms are fourteen days from invoice but I worked for one global law firm who were happy to do weekly bill/weekly pay. I worked that way for years without issue and fourteen days is the worst payment terms I've ever had.

Just talk to them. Tone is everything, most managers have no clue how to work direct contracting so just make your tone that that's a matter-of-fact thing that you expect short payment terms and be "surprised" if they want longer. My standard tone is, "oh, ok, that day rate was based on my standard terms", I haven't ever needed to go further.

A competent finance department's AP team can do same day payments without difficulty, if they're expecting it. Weekly bill/weekly pay is only an issue where there's jobsworths or deliberate corporate AR/AP "positive cash flow" systems in place. Generally, most companies CAN fit in with your needs, you just need to convince them why they should.

[quackhandle]

Twenty years contracting and you need the cashflow? Begs the question: Gambling debt?

Going direct ain't always that great, you are just another creditor that needs paying, sometime you go to the bottom of the pile. Be surprised if a client will pay you weekly but you never know, don't ask, don't get and all that.

Can be handy to find a name in the finance team, buy them a coffee now and again.

qh

[northernladuk]

Although it should be noted that once you start drawing down funds on unpaid invoices it can be very difficult to give it up again...

Excellent advice from Safe Collections as usual.

[Safe Collections]

You could also potentially look at some of the newer P2P lending/invoice discounting services available as they may be more flexible than traditional factoring or discounting companies.

Although it should be noted that once you start drawing down funds on unpaid invoices it can be very difficult to give it up again...

[MrButton]

Look for a permie role where you get paid at the end of the month. Every month?

Or apply for a business loan (not sure how realistic this is) until you can get your finance in shape. But I don’t think this is a solution to an unhealthy business.

[uk contractor]

If you go direct then its most likely 90 days wait you may get luck and its only 60 days. Agencies do have some uses after all perhaps give some money away & go via an agency instead if the client will allow that otherwise surely you have a healthy overdraft facility to live on for a few months?

[l35kee]

Take out a payday loan to cover you until you get paid.


(But only pick one with a name that makes it sound healthy or refreshing, like "Satsuma", "Peachy", LuckyLoaans" or even "Sunny".)

[tarbera]

Ask to be paid in advance ?

[TheFaQQer]

I did see in the past companies that would pay on a timesheet - are they still out there?

If you have a client lined up, isn't this irrelevant? It only matters whether your prospective client will pay on those terms (hint: that's incredibly, incredibly unlikely).

If you need weekly payment then you need an agency or factor the invoice. Maybe even introduce an agency to the client who will do this at a low percentage rate, and you could have more control over the contracts between the three of you.

[rvg400]

Circumstances have worked against us so to answer the question no, hence the question on alternative sources.

[northernladuk]

After 8 years is your cash flow so bad you can't survive a month or two while you get paid??

[rvg400]

Hi there,

I have a potential opportunity where I will go directly to a client without an agency involved. The problem I have is that for the last 8 years or so I have been going through agencies who have paid me weekly.

What I need to understand is what are the alternatives in turning my effort into cash on a weekly basis to maintain cash flow? Obviously, there is factoring or invoice discounting but are there other alternatives?

I did see in the past companies that would pay on a timesheet - are they still out there?

Any help will be really appreciated - even though I have been contracting for 20 years this is the first time this is an issue.