Reply to: Agent paying my invoices by cash

[TykeMerc]

It's not that ludicrous, a few years ago I had some subcon resources on a project, I found it easier to draw a big lump of cash out and pay the invoices. The book keeping wasn't at all tricky, just apportioned the withdrawal to the invoices.

There had been a couple of cockups from the bank previously and it was a guaranteed way to be sure the money was in their accounts on the promised dates and I had the BGC receipts.

[Lumiere]

Have you asked him why he sometimes pays cash ?

No, just discovered it after analysing the fees summary document from my bank (still free banking, would cost me a significant amount otherwise)

[Lumiere]

If he has other business interests which receive cash

like car boot hot dog sales or you suggest he might be a real pimp ?

[weemster]

Sounds Shaky !

[rhubarb]

Have you asked him why he sometimes pays cash ?

[Archangel]

Not all of them, just some from time to time ..

Should I be worried ? I do not understand where would he get cash in this type of business, he should receive all his payments from clients by BACS ..

If he has other business interests which receive cash it is cheaper to pay it into your account than his (banks charge for cash deposits).

[Lumiere]

Doesn't a BACS payment cost £20 or so? Maybe he has just worked out that by withdrawing and depositing cash he is saving that £20 EACH week to EAC contractor. It soons adds up. Very frugal!

DICLAIMER: I have no idea if any of this is ptrue or even remotely plausible.

No, that's CHAPS. BACS normally is the cheapest option (free) ...

[JoJoGabor]

Doesn't a BACS payment cost £20 or so? Maybe he has just worked out that by withdrawing and depositing cash he is saving that £20 EACH week to EAC contractor. It soons adds up. Very frugal!

DICLAIMER: I have no idea if any of this is ptrue or even remotely plausible.

[Lumiere]

Sounds plausible. The specific agent adding his own cut on top of his agency's cut.

it's a freelance agent, he is "the agency"

[Lumiere]

Sounds strange. I wonder if he's adding a couple of hundred on to the invoices you're sending him. He then takes out the cash for the modified invoice, pays you the amount you originially invoiced for and pockets the difference.

Can see this scenario working, but this is such a stupid thing to do, any investigation will instantly reveal the difference between contact values / timesheets / invoices etc. ..

could it be something related to BTL income ?

[Hex]

Sounds strange. I wonder if he's adding a couple of hundred on to the invoices you're sending him. He then takes out the cash for the modified invoice, pays you the amount you originially invoiced for and pockets the difference.

Sounds plausible. The specific agent adding his own cut on top of his agency's cut.

[Lumiere]

Pays cash to your account and electronic transfer to drug dealer.

Why would pimp be receiving cash? Are you paid weekly? And I guess below £3k/week - the level they start asking questions or gets flagged.

Is it as simple as that, one can take a couple of grand out of his pocket and say this is my company's money from now on ? Shouldn't this money be accounted first ? If you made no withdrawals and all your clients pay electronically, how do you record this money ?

p.s. it was more than £3K on a couple of occasions ..

[krytonsheep]

Sounds strange. I wonder if he's adding a couple of hundred on to the invoices you're sending him. He then takes out the cash for the modified invoice, pays you the amount you originially invoiced for and pockets the difference.

[Emigre]

No, he deposits it directly into my account in his local branch (I can see it from my bank statement). VAT inclusive, figures match invoice.

I am just thinking, could it be an indication of something wrong going on .. e.g. serious cash flow problems or some sophisticated money laundering scheme ?

Scenario? Pimp gets paid by clientco by electronic transfer. Pimp also has arrangement where he legitimises cash for drug dealer etc. Pays cash to your account and electronic transfer to drug dealer.

Why would pimp be receiving cash? Are you paid weekly? And I guess below £3k/week - the level they start asking questions or gets flagged. There's only so many cars you can sell.

In an inspection several years down the line you will be the one explaining why the receipts are in cash - he could have said anything when he put it there. I would ask for payments to be made the normal way. Professional business is not done in cash - unless its the oldest profession and even some of them I believe take cards now.

[Lumiere]

No, he deposits it directly into my account in his local branch (I can see it from my bank statement). VAT inclusive, figures match invoice.

I am just thinking, could it be an indication of something wrong going on .. e.g. serious cash flow problems or some sophisticated money laundering scheme ?