Reply to: Would you take a short gig with long payment terms during this period?

[simes]

So, question is quite simple. Have had 2 chats during previous week.
Both 2 month gigs with small agencies. One of them mentioned weekly invoices(albeit the interview appointment failed to arrive so far).
Both assumed 30days payment terms so payment might arrive after you've left clients site.

Would people take them? Considering the risk of non-payment, racking up additional expenses?

Must admit when you said, 'Long Payment Terms' in the title, I was expecting 60 days.

30 is fine.

[GigiBronz]

Would you take a short gig with long payment terms during this period?

Wouldn't see it an an issue, I have IPSE+, once the first month is down then you'll get paid monthly anyway... have done this before without issue and it all works out the same at the end of the day. The tangible challenge will be getting your client to sign off timesheets (where required) before the monthly deadline so that you're not deferring too much into the next month... but again, it all comes to you at the end of the day (well, month)

It is a two months only gig so first payment would arrive theoretically when I am off-site. Generally I would trust the agency as well but considering it is a small agency and this period that we are going through... not quite sure.
I don’t trust insurance products either, at least from what I’ve seen they are good at “buying peace of mind” and only that.

I am pretty sure that if I were to make a claim for 30k the insurance company would put more man power for themselves to get out of it than sorting it out for myself. It is just how business is. Would you start a fight with defenseless small guy or mid-size agency with legal department that “have been around the block”?

One of the gigs went silent. The second one, had a first chat with one of the directors, second chat to follow next week including the main guy. Small consultancy around London, seem decent and I think I could be of better use there than somewhere else.
I’ve developed quite a strong anti-corporate, anti-politics tendency and trying to figure my way around that.
Keeping it about the things that matter - the work.

[PerfectStorm]

Wouldn't see it an an issue, I have IPSE+, once the first month is down then you'll get paid monthly anyway... have done this before without issue and it all works out the same at the end of the day. The tangible challenge will be getting your client to sign off timesheets (where required) before the monthly deadline so that you're not deferring too much into the next month... but again, it all comes to you at the end of the day (well, month)

[eek]

Presumably they charge a larger fee then?

Pass but I departmentalise costs - small consultancy work we don't factor, larger consultancy work we do, support and licensing is paid up front so I don't want them anywhere near that.

The reason we use them is because it allows us to offer contractors weekly payment with 1 week terms...

[Lance]

That does depend on the factoring company you use - most will insist on factoring everything, the ones we plan to use don't.

Presumably they charge a larger fee then?

[CheeseSlice]

Isn't factoring something these small agents should be using, not the one-man-band contractor?

I'd check the basics on companies house...

filing history, anything outstanding or overdue, including historical
unsatisfied charges that are secured against company assets
gazette notices, past and present
last 3 years P&L, balance sheets, looking for anything suspect
current directors, and other businesses they're involved in, particularly any that have been closed down.

[eek]

no.

They claw back the money if payment never comes.
They also will have a percent of ALL your business. Factoring only helps cashflow. It's not protection against bad debt,

That does depend on the factoring company you use - most will insist on factoring everything, the ones we plan to use don't.

[Lance]

Is invoice factoring worth considering?

no.

They claw back the money if payment never comes.
They also will have a percent of ALL your business. Factoring only helps cashflow. It's not protection against bad debt,

[vwdan]

30 days? Wouldn't think twice to be honest - loads of mine have been 30 - 45 days

[eek]

Protect yourself | IPSE

10k business interruption insurance.

IPSE even now offer "up to £2,500 if your umbrella company goes bankrupt or into administration." so they know their new market place.

[SussexSeagull]

30 day terms are fairly standard now so yes I would take it.

[Old Greg]

Protect yourself | IPSE

10k business interruption insurance.

[Old Greg]

Protect yourself | IPSE

10k business interruption insurance.

[ladymuck]

It does not solve the risk issue - factoring gets you the money early but if the agency goes bankrupt you will need to pay the factoring company back

Not if you then go bankrupt

[eek]

Is invoice factoring worth considering?

It does not solve the risk issue - factoring gets you the money early but if the agency goes bankrupt you will need to pay the factoring company back