Reply to: IT Contractors - monthly payment?

[jamie]

Never been paid weekly, never wanted to be. Far too much hassle.

Weekly payment is like hourly rates: for tape changers and low-rate help desk bods. Proper contractors bill daily and invoice monthly.

What tripe.

I don't think you can generalise like that - I get paid weekly some of the time, depends what the work is and who through. I have been contracting since 2000 and would consider myself to be very well reimbursed for my troubles. So weekly for tape changers and low-rate help desk bods...i think not.

IMHO

AJ

[Epiphone]

On a short contract (i.e. 3 months) I would probably just invoice at the end as this is how I think a business should run...

How many companies do you know that'll give you a free 90 day credit period, epecially if you've not dealt with them before?

No way would I give an agency a 90 day loan gratis. What if they go bust?

[135R]

People,

Thanks for your comments and opinions on this matter. Very interesting and some very unexpected.

I agree completely with DodgyAgent and point out that at both my current and previous company we were never paid by the client before paying the contractor's invoices. The debtor days of some clients can run easily into three figures, and most pay on at least 30 days, so even on a monthly payment cycle there is no way we (and I would guess most other recruitment agencies) will benefit from interest payments.

Again, thanks for your input folks

135R

[oraclesmith]

When going direct I tend to invoice weekly at first and then every few weeks or whenever I want. This is because the client's are large corporates and they almost always take a leisurely 6 weeks to actually make the payment. If I didn't send invoices into the payment pipeline weekly and went monthly instead, then I would have maybe 10-12 weeks between starting work and receiving anything in the way of fees.

If it's a small client, then I only ever invoice when I've finished the job.

Currently I'm working through an EB and they have a monthly system.

[NewBoy]

My last contract I invoiced quarterly...and my current one I'm invoicing monthly...to be honest, really not bothered..

On a short contract (i.e. 3 months) I would probably just invoice at the end as this is how I think a business should run...

If you are being completely IR35 friendly then you will be being paid for a piece of work rather than going in every day...when I have dealt with the 'big 5' I have agreed milestones/checkpoints on which payment would be made on long contracts [this is when I have been the customer rather than the supplier)...therefore this model is liekly to be liked by Gordo and his henchmen.

This is how I think I will structure future contracts...and there is nothing to stop you manufacturing the checkpoints to be delivered roughly 30 days apart

[cojak]

Run a Ltd and the money's in your account as soon as the agent pays it in.

HTH.

(No a 1st post doesn't exempt you...)

[jLawrence]

My first posting so I feel excempt from coming up with anything witty or clever

Currently I am on fortnightly. My Previous contract was monthly, the one before that was weekly. The problem I had with the monthly pay contract was that I was working through an umbrella that paid monthly, and the days clashed, so it took 2 months to get paid, which was a pain when it came to checking money against time etc. Really I think weekly is fair, because with smaller companies you cant always guarantee getting your timesheets signed on time (currently I am three weeks behind on timesheets, if I wasnt a contractor I would be broke) because you may not see anyone with the authority to do this. And you have to deal with any third parties that your money may pass through before hitting your account.

[DodgyAgent]

Very few agencies get paid within 30 days of invoice, so where you people think that agents are getting "interest" from intrigues me. We do not get paid for any of our contractors before we pay them.

[oxtailsoup]

Like everyone on here, I usually have 4 or 5 contract offers to choose from and generate a matrix spreadsheet to cross-ref location, travelling time, agency payment terms, client rep, office environment, work required.

MY @RSE - If I am lucky I get one offer for a job I want (or I wouldn't have applied) and would need a very good reason to knock it back.
The payment terms are the bottom of a long list that starts with - can I get there and back each day.
Makes the decision a lot easier I can tell you !

Spot on

[lukemg]

Like everyone on here, I usually have 4 or 5 contract offers to choose from and generate a matrix spreadsheet to cross-ref location, travelling time, agency payment terms, client rep, office environment, work required.

MY @RSE - If I am lucky I get one offer for a job I want (or I wouldn't have applied) and would need a very good reason to knock it back.
The payment terms are the bottom of a long list that starts with - can I get there and back each day.
Makes the decision a lot easier I can tell you !

[pippo]

Would any contractors make a decision not to go to an agency based on this issue, if they knew that the agency in question only paid monthly?

Cheers

Good and clear question 135R. Answer: yes. In fact, that's what i'm going to do for my next contract search: I will give preference to agencies that will pay me weekly. Obviously this will not be the only deciding factor but it will be one of the most important ones.

[Barriebazg]

Would any contractors make a decision not to go to an agency based on this issue, if they knew that the agency in question only paid monthly?

Cheers

Not for me. It would definitely not stop me going to an agency. Its nice to be paid weekly, so I get the interest on it rather than an agency, but for me personally it wouldnt stop me choosing said agency.

Barrie

[135R]

People,

Thanks for your thoughts on this subject, appreciated and very useful.

It seems that this is a lot less clear cut than I expected. As some people have said, it often comes down to personal preference. I expected higher paid contractors to say they were paid monthly, and helpdesk/desktop support people to weekly, however there seem to be contradictions to this rule.

Would any contractors make a decision not to go to an agency based on this issue, if they knew that the agency in question only paid monthly?

Cheers

[Maxamus]

WEEKLY !
Good for interest!

i fax the timesheet on monday, they pay by friday.

Me too! Money bes in my account for when i wake up on Friday morning. Then i go to work while the women spends it

[Barriebazg]

I think it all just comes down to personal preference.... If you have the choice between monthly or weekly its whatever your comfortable with. Its nice to have the option to choose. I personally have weekly payments.

There is no right or wrong way IMO its purely what your happy with.