Reply to: Weekly or Monthly?

[vhadiant]

I'm on monthly payment cycle.

[Sundance]

Hi all, long time lurker first time poster.

I've always just assumed the payment timescale put forward by the client but a contractor I've recently got to know indicates that he always insists on being paid weekly.

If you have the option, always go for weekly payments. Just in case the client OR the agency OR the brolly (like the clowns at P4) goes bust! It minimizes the risk to yourself, and remember, always follow the money

[Not So Wise]

Currently weekly into my company account, normally paid same day/next working day from invoice, pay myself monthly

Many ways would prefer monthly though as less paperwork, normally agency chases me for invoice if more than a day late sending invoice, weird feeling having an agency chasing me so they can pay me

[Murder1]

Can't thank everyone enough for the info.

Cheers

[Peter Loew]

Indeed, I'm trying to manage finances such that I don't pay a dividend every month (yes I know it's "ok" to but I'd still rather not) - initially I had to but I'm managing longer intervals between payouts now.

Exactly. What I did is put a family member on the payroll, and inject a 4k-ish dividend every 3 months or so (randomised time intervals). I think I can survive like that but we'll see!

[Dark Black]

...Only recently have I started to use an LTD, and am getting used to paying myself a silly salary every month and dividends every so often. It changes the way I have to think about my financial management.

Indeed, I'm trying to manage finances such that I don't pay a dividend every month (yes I know it's "ok" to but I'd still rather not) - initially I had to but I'm managing longer intervals between payouts now.

[VectraMan]

I've always been weekly, just because that's what the agents have done by default. My first month of contracting I was pretty glad of it, but once you're up and running it makes little difference. It's really just extra paperwork.

[Peter Loew]

Are you LTD or working through a brolly?

I'm LTD so from a "funds in my personal account" point of view I still only see money on a monthly basis. However my company receives payment for invoices weekly. Over the length of a contract that's a fair amount in gained interest in the company account

I've got an LTD and work through that. It all depends on how much you pay yourself too. Previously I was working through a composite so was used to getting a bulk of money every month, a percentage of which I would allocate to a HISA. Only recently have I started to use an LTD, and am getting used to paying myself a silly salary every month and dividends every so often. It changes the way I have to think about my financial management.

[buffdaddy]

I invoice at least once a month (since both my client and i am moving about a lot, Its difficult to meet up for him to sign my timeheet).

the next wednesday after the timesheet submission, I get paid (the following monday the money appears in my company bank account)

[Cooperinliverp00l]

I invoice client weekly and they pay 7 days later. They have 2 pay runs a week so pretty much as soon as they have registered my invoice it gets put onto the next pay run. My contract says monthly though so might be worth asking them what would happen if you invoiced weekly.

I pay myself from my LTD monthly on the last day of the month.

[Dark Black]

Agree with the above. Though I personally prefer to get paid monthly, because I am better used to managing and tracking my finances on a monthly basis rather than on a weekly one, which I find to be a pain in the ass to manage.
P

Are you LTD or working through a brolly?

I'm LTD so from a "funds in my personal account" point of view I still only see money on a monthly basis. However my company receives payment for invoices weekly. Over the length of a contract that's a fair amount in gained interest in the company account

[Peter Loew]

Agree with the above. Though I personally prefer to get paid monthly, because I am better used to managing and tracking my finances on a monthly basis rather than on a weekly one, which I find to be a pain in the ass to manage.

P

[boxman]

I always consider credit risk as a major issue. After all what's the point in doing the work if you're not going to get paid?

Unless both agency and client are major companies then I always run a credit check on them before agreeing to their terms. With larger companies they may not pay quickly but assuming you have signed timesheets you'll get paid at some point even if this is not always on time. If you speak to anyone that runs a business they'll tell you that getting paid on time is nice but the key thing is getting paid (as opposed to not getting paid).

A lot of agencies seem to be moving away from the invoice factoring approach (this costs them money) to have woolly terms along the lines of yourco will get paid when we've been paid. This is all very well but you need to consider the credit risk to your business. I always start with weekly payment being the preferred solution but recently I've moved to monthly where invoices have been settled on time. You're only as good as your last paid invoice remember!

Just my 2p worth you understand....

Rob

[Murder1]

I always prefer to invoice weekly - don't like company money earning interest in anyone else's company accounts than ours!

Apart from the risk of the client going bust this is the only reason I could see for doing it. However Dark Black do you find the client just collates the four invoices and process one payment at the end of the month or do they actually process a payment for each invoice?

[Dark Black]

I always prefer to invoice weekly - don't like company money earning interest in anyone else's company accounts than ours!