Changing payment terms

[zamzummim]

What's the big deal about getting paid in 37 days? I agree the agency are bastwards cuz they lied about it, but FYI I have been paid 30 day after submitting my invoice for the last 2.5 years. The last year was a direct contract with no agency involved, however, clientCo still takes minimum of 30 days to pay my invoice, sometimes their finance(which is outsourced ) make stupid mistakes and I don't get paid for around 40to 60 days.

Negotiate with the agency a payment within 14 days, this should keep you both happy. But 37 days is not the end of the world.

As for the risk of cutting your rate or giving notice, this is a risk always associated with contracting, don't do anything rash, stay cool.

[Platypus]

And just remember that in two months' time they could impose the 10% rate cut on you anyway by terminating the contract unless you agree.

[b0redom]

Asked them to confirm in writing why they want to change the payment terms, and they've started backpeddling rapidly.

They now say that their payment terms have always been 60-90 days from ClientCo, but previously they were making a big enough margin to pay out within 7 days. ClientCo has allegedly slashed their markup from around 10% to around 8%.

I think I'll start looking around again, accept the terms if I can't find anything, and then up sticks as soon as I find something suitable, leaving ClientCo in no doubt that I'm leaving due to the agency.

[Sockpuppet]

Tell them to stop playing silly buggers.

Or invoice them daily until they go back to 7 day credit period.

[Menelaus]

Just spoke to my customer contact who's heard nothing, so I spoke to the PMO person who has heard nothing. She called the HR dept responsible for paying the bills, who have also said that nothing has changed, and infact, the agency are marked as "To be paid quickly".

Sounds like the agency are fcuking you over. They're essentially wanting to hold on to the money longer so that they can earn a bit of bid account interest on it, the sneaky fcukers.

On this basis, I'd recommend that you explain what's happened and threaten to withdraw your labour via them and go to the ClientCo direct.

[b0redom]

Just spoke to my customer contact who's heard nothing, so I spoke to the PMO person who has heard nothing. She called the HR dept responsible for paying the bills, who have also said that nothing has changed, and infact, the agency are marked as "To be paid quickly".

[TykeMerc]

There's a drawback (how major is debatable) with dumping the agency, since you're opted IN they can't get out of actually paying you, unless they go mammaries upwards, as the regs do provide some kind of protection. In B2B contracts extracting payment can be much more of a pain in the nads even if the client is perfectly solvent.
Obviously how you measure that risk is an issue you need to resolve yourself.

Maybe a word with Clientco about the agent trying to fart about with your payment term will see them exerting some pressure.

[b0redom]

I suspect that they might, I suspect that the agency wouldn't.

I'm opted in to the regs as I didn't opt out before interview.

To be honest, I would be quite happy to extend additional payment terms directly to the (very large) ClientCo for a modest uplift.

I'm wary of doing this to the agency.

[Menelaus]

Hi All,
I've been in the current contract for about 18 months. I wasn't expecting a renewal this time, so I found something else. It was on a lower rate, but was a longer term gig.

I spoke to my customer contact and told them I'd be leaving and they offered me an extension on the spot, so I said OK. They then told me that all contractors were required to take a 10% cut, so I told them no thanks, that puts the other offer in spitting distance of this one, and clientco magically found the cash.

I've just been contacted by my agency and told that I'm very lucky as everyone else is being forced to take a 10% cut, and they're changing the payment terms from 7 days to 37 days as they can't get financing / factoring, and ClientCo have extended their payment terms from 60 to 90 days.

At the peak worst case scenario I'll be owed 2 months of money should the agency go pop.

What does the panel reckon?

Should I tell them to get stuffed, as the terms and conditions have changed, will my handcuff period also be void?

Cheers...

This sounds to me a lot like you're being screwed over twice.

First, your agency are unilaterally extending their payment terms with no indication of what benefit you receive (which appears to be none) - you are required to take more risk, not less.

Second, ClientCo are tightening the margins with the agency (who may have been screwing them left, right and centre for months or years) meaning that your agency don't get paid any more

It might be more appropriate for ClientCo to be a direct client of you rather than having the pimp take their pound of flesh. Would they go for it, do you think?

[b0redom]

Hi All,
I've been in the current contract for about 18 months. I wasn't expecting a renewal this time, so I found something else. It was on a lower rate, but was a longer term gig.

I spoke to my customer contact and told them I'd be leaving and they offered me an extension on the spot, so I said OK. They then told me that all contractors were required to take a 10% cut, so I told them no thanks, that puts the other offer in spitting distance of this one, and clientco magically found the cash.

I've just been contacted by my agency and told that I'm very lucky as everyone else is being forced to take a 10% cut, and they're changing the payment terms from 7 days to 37 days as they can't get financing / factoring, and ClientCo have extended their payment terms from 60 to 90 days.

At the peak worst case scenario I'll be owed 2 months of money should the agency go pop.

What does the panel reckon?

Should I tell them to get stuffed, as the terms and conditions have changed, will my handcuff period also be void?

Cheers...