Question relating to a direct contract with client

[krytonsheep]

And how does that go?

I ask because I see a lot of people on here saying they insist on the same - in my experience, I can get almost anything changed other than that.

I normally start by telling a story about an experience I had the first time going direct and the company not paying an invoice due at the end of November, until a few months later, making Christmas quite stressful. That company went under not long after.

The hiring person will check with finance/accounts to see if 7 day payment terms work, when I'm invoicing once a month. That's usually no problem.

In truth with my current contract they don't always pay within 7 days if people are away on holiday and there's no one to raise a purchase order etc, but it's never been more than a couple of weeks.

[JustKeepSwimming]

And how does that go?

I ask because I see a lot of people on here saying they insist on the same - in my experience, I can get almost anything changed other than that.

In my home terf, finance industry, the standard is 0/7/14 days. By which I mean timesheets are submitted 2-3 days before end of month and then paid on those terms. 31/05/23 being payment for all of April isn't normal, for agency or direct.

[courtg9000]

And how does that go?

I ask because I see a lot of people on here saying they insist on the same - in my experience, I can get almost anything changed other than that.

The only real way to sell this is on the back of credit referencing and generally, you have to be able to back it up hard. On top of that the client will need a large number of very good reasons to stick with you and not go elsewhere.

[PerfectStorm]

I now insist on short payment terms from the date of the invoice being issued. E.g. 7 days.

And how does that go?

I ask because I see a lot of people on here saying they insist on the same - in my experience, I can get almost anything changed other than that.

[krytonsheep]

If the client provides a contract I normally get QDOS and a lawyer to review it. The only real issues I've had are invoice payments if the company is struggling financially. I now insist on short payment terms from the date of the invoice being issued. E.g. 7 days. That way I know if there's an issue sooner rather than later.

[edison]

My last two contracts have been direct with medium sized firms (both around £100m turnover.)

I would get a credit check report for the company from Experian Business Express which costs about £20-25. This will detail your potential client's risk of default, any adverse credit history and payment performance history. This is important for when you set your invoice payment terms which typically is monthly, 30 days in arrears so you won't get paid for two months after you start.

If the company has a higher credit risk rating then you might want to only offer shorter payment terms.

[Lance]

For a start you don't want to be talking to HR unless you want a job.

As a business you need to be talking to purchasing.
If they've never had any direct contractors before they won't have any useful contracts. Just get a PO from them and review their Ts&Cs.

You can use your own contract as well. IPSE offer templates, as do the FSB.

[gixxer2021]

Hi, I’m currently direct (outside ir35) with my client, who’s a small company too. My advice is to offer to use an ir35 friendly contract template, rather than one of their contracts. My client was v happy with this. I used one from the same company that reviewed my contract (B & C) who are excellent btw. If they do use one of theirs, then I’d get it checked over for both ir35 and legal terms (you’ll want to check ip clauses, competition clauses, payment clauses, etc as well as the usual ir35 compliant stuff). Good luck!

[mohasi]

Hi all,

State of the market is not the best at the moment, so I reached out to an old client directly and the initial phone call went well. It is a small company and they have not hired a contractor directly before. The manager was wanting to go direct I assume because it would be cheaper and was adamant this HR person could handle it fine. It was only an initial call and I am unsure if he will follow through. But if he does, what kind of things should I watch out for with regards to a direct contract with the client. I don't have a recruiter to back me up or any kind of safety net is there any red flags or things I should ensure are on the contract? I have also not dealt directly with a client before.

Thank you