Reply to: Weekly or Monthly?

[TheFaQQer]

also, my company has absolutely no cashflow problems whatsoever, theres no commercial sense in paying out 4 times a month when you only get paid in once, thats all.

Of course it doesn't. That's what they tell you at least.

There's even less commercial sense in breaching all your contracts for not good reason.

[Not So Wise]

heres no commercial sense in paying out 4 times a month when you only get paid in once, thats all.

Yes there is, it's called providing a factoring service, which is only reason agencies can justify margins of 10%+ after the first 3 months of a contract.

Provide service you get paid for or drop to margins of < 2% after 3 months

My rule is simple, greater than 7 days from invoice to payment means weekly payments. Less than 7 days and I am willing negotiate a monthly invoicing schedule at contract start/renewal. (Though don't ask me to accept weekly to monthly change like this at renewal unless I am getting something out of it or you will be told to Feck Off)

Any attempt mid contract to change payment terms in a negative manner (once had agency want to change from monthly to weekly, which I obviously accepted) will result in client being told immediately that agency is jeopardising the contract. Something that will make any agency with sense back off and if they don't means they are having serious money problems and I (and client) probably don't want to continue doing business with them anyway

[Whatevs]

So, did you negotiate the change in terms, or did you just impose them on your suppliers? If I had an agent trying to change the terms that we had agreed to, then I would have no sympathy at all, would treat it as a breach of warranty, and be out the door (after explaining to the client exactly why I was leaving).



Well, you are pretty numb then, aren't you?



The point is that you are having cashflow problems. Why else are you changing the payment terms? If you are going bust, then I would be a little upset by it, to say the least. It's also not about how often you get paid, it's about the contract that your company agreed with the contractor - how would you react if the contractors suddenly imposed new conditions on you, e.g. new rate, new notice period etc.




Doesn't sound likely, now does it? If you are going to be having cashflow problems, then word is going to get out amongst contractors and clients about how you chop and change your terms and conditions having agreed a contract.

Expect a few new threads over the next week or so about scumbag agents changing the payment terms and what can they do about it. Also expect to be, quite rightly, named and shamed.

I'd just like to say for the record that the agents that you lot talk to won't have anything to do with payment terms changing, thats looked after by the men in suits upstairs.

feel free to name and shame, it doesn't affect me in the slightest. also, my company has absolutely no cashflow problems whatsoever, theres no commercial sense in paying out 4 times a month when you only get paid in once, thats all.

[cojak]

Agency changing from weekly to monthly payments - HELP!
<placeholder for now>

Ah! Now I get it!

[RichardCranium]

Expect a few new threads over the next week or so about scumbag agents changing the payment terms and what can they do about it. Also expect to be, quite rightly, named and shamed.

That won't bother Whatevs. By then he'll have been told "there's been an admin problem regarding last quarter's commission and it might be a bit late". By Christmas he'll be up the Job Centre and wondering if he might get any redundancy payment so he can buy his kids something for Xmas.

[TheFaQQer]

Just to update you on this, we have informed some of our contractors that they will now be getting paid monthly and some have totally seen their arse over it.

So, did you negotiate the change in terms, or did you just impose them on your suppliers? If I had an agent trying to change the terms that we had agreed to, then I would have no sympathy at all, would treat it as a breach of warranty, and be out the door (after explaining to the client exactly why I was leaving).

we've been surprised by the backlash

Well, you are pretty numb then, aren't you?

- but if you are getting paid in excess of £60k-£70k a year whats the point in getting paid every week?

The point is that you are having cashflow problems. Why else are you changing the payment terms? If you are going bust, then I would be a little upset by it, to say the least. It's also not about how often you get paid, it's about the contract that your company agreed with the contractor - how would you react if the contractors suddenly imposed new conditions on you, e.g. new rate, new notice period etc.

anyway, loving all the agent hating on the forums, makes me smile at least. seems like all we have to do is be a half-decent consultant and we'd still be better than every other cowboy out there! result.

Doesn't sound likely, now does it? If you are going to be having cashflow problems, then word is going to get out amongst contractors and clients about how you chop and change your terms and conditions having agreed a contract.

Expect a few new threads over the next week or so about scumbag agents changing the payment terms and what can they do about it. Also expect to be, quite rightly, named and shamed.

[thunderlizard]

Me too. The decent thing would be to make sure you get monthly terms for your new contracts, but stick to agreed terms for your existing contracts.

Normally I charge monthly anyway, but if I did have a customer on 1 week's credit and they suddenly jumped to paying monthly I'd be wary about renewing. It doesn't take a fortune-teller to see what their next step would be.

[Gonzo]

we've been surprised by the backlash - but if you are getting paid in excess of £60k-£70k a year whats the point in getting paid every week?

It is not about needing the money it is about limiting the exposure.

Agencies do go bust and when that happens the contractors are unsecured creditors who usually get £0. This is worse if they are owed a few months money rather than a few weeks.

[FarmerPalmer]

If I was contracting through an agent and they suddenly went from weekly to monthly then I would be very concerned and would be looking elsewhere for my work, as it sounds like they are having a cashflow problem.

Just my 2p.

[Whatevs]

Just to update you on this, we have informed some of our contractors that they will now be getting paid monthly and some have totally seen their arse over it.

we've been surprised by the backlash - but if you are getting paid in excess of £60k-£70k a year whats the point in getting paid every week?

anyway, loving all the agent hating on the forums, makes me smile at least. seems like all we have to do is be a half-decent consultant and we'd still be better than every other cowboy out there! result.

[lje]

Monthly but Quick Payers

I invoice monthly and contract directly with the ClientCo. If I invoice on a Friday they pay me the following Tuesday - and they are financially very stable. If I had to wait 30 days for payment or had concerns about the financial stability then I'd go weekly all the way.

[TheFaQQer]

I am gonna sign now with an agency. They told me that the payment schedule is 4 weeks after invoicing.
Should I try hard to get weekly payments? How reluctant are going to be to change their terms?

How hard should you try - how long is a piece of string? Or to be more precise, how good a credit rating has the agency got, and how much do you need the money?

How often will you be invoicing? If it's 4 weeks payment terms (not unusual by any means), then I would expect to be invoicing weekly.

If they are being silly about it, then tell them you will accept the four weeks from invoice date, but will be invoicing daily.

[Svalbaard]

Depends - admin of weekly payments tend to be more expensive if you are with an Umbrella company.

I prefer monthly myself as I prefer to see the really big numbers on my payslip.

[mcontracting]

Ha ha thanks Richard I 'll quote that one

[RichardCranium]

I am gonna sign now with an agency. They told me that the payment schedule is 4 weeks after invoicing.
Should I try hard to get weekly payments? How reluctant are going to be to change their terms?

Ask and see what they say. Based on my experience, some will give a flat "No! Cannot be done! Hell will freeze over first! Can't change the contract! It's again the law!" and others say "OK."

Suck it and see.

A line I use is "I'm skint and weekly payments for the first month would be good" and then never remind them to go back to monthly.