Payment Schedule clause

[biondani]

I am on monthly invoicing direct to client and 42 day payment terms but had an email this week saying the client is outsourcing the payment of contractors to Resource Solutions and I will get a new contract in next few weeks to change the payment terms to 7 days. To be honest though I usually get the payment within 2 or 3 weeks from invoice date. The first few payments took the full 42 days but things have improved on that front.

Ianh

[The Agents View]

There are four guys I work with here who are on monthly billing with 45 day terms. Three of them are very experienced contractors as well! None of them were best pleased when I mentioned that I'm on weekly billing with 7 day terms. Apparently some contractors will sign whatever is put in front of them and don't think contracts are negotiable.

Check the reality of it as well - my contracts officially state 28 days, but we run payroll twice a week, and people get paid on the next run after they submit time and invoice.

Not a legal standpoint worth having, but good to know how aggressive you need to be.

[craig1]

Ahh lol was gonna say..

28 is about as bad as it gets. Only once did I get offered 45 days which I refused and got down to 14 days in the end. 14 or 7 are my preferred options but have had 30 days before. You reduce the risk of the agent going belly up and running off with more of your money if you are on a longer period. Cash flow wasn't a problem and they paid on the 30th day as promised so didn't have a problem it. Out of all of them the 7 day gig was the most problematic.

Ask for 7 and be happy to meet at 14 IMO.

There are four guys I work with here who are on monthly billing with 45 day terms. Three of them are very experienced contractors as well! None of them were best pleased when I mentioned that I'm on weekly billing with 7 day terms. Apparently some contractors will sign whatever is put in front of them and don't think contracts are negotiable.

[northernladuk]

Not trolling - perhaps I worded the post wrong.

I've been out of contracting for 18 months and just returning and thought I would put the question out there.

Ahh lol was gonna say..

28 is about as bad as it gets. Only once did I get offered 45 days which I refused and got down to 14 days in the end. 14 or 7 are my preferred options but have had 30 days before. You reduce the risk of the agent going belly up and running off with more of your money if you are on a longer period. Cash flow wasn't a problem and they paid on the 30th day as promised so didn't have a problem it. Out of all of them the 7 day gig was the most problematic.

Ask for 7 and be happy to meet at 14 IMO.

[FiveTimes]

If you're happy with 28 days then that's fine, especially if it's a reputable agency.

I do my damnedest to get 7 day terms and get quite huffy if I can't get them.

It's always worth asking for better terms, don't ask, don't get.

The contract is not with a big player, its a small firm that the end client use.
I think I'll push for 7 days and see what happens.

[craig1]

If you're happy with 28 days then that's fine, especially if it's a reputable agency.

I do my damnedest to get 7 day terms and get quite huffy if I can't get them.

It's always worth asking for better terms, don't ask, don't get.

[FiveTimes]

You have been on the boards since 2007 and have 14000+ posts and you don't know if you are happy with a 28 day payment clause????

You are trolling yes?

Not trolling - perhaps I worded the post wrong.

I've been out of contracting for 18 months and just returning and thought I would put the question out there.

[northernladuk]

Does the above seem like a good clause, or shall I try and get this figure down a little.

You have been on the boards since 2007 and have 14000+ posts and you don't know if you are happy with a 28 day payment clause????

You are trolling yes?

[JamJarST]

Does the above seem like a good clause, or shall I try and get this figure down a little.

You will get differing advice on this. Is it with an agency or direct with the Client Co? My payment terms are 30 days with the current agent and I know for a fact that their terms with the end client are 45 days, so seems okay to me.

[FiveTimes]

The Service Provider shall issue weekly invoices to the Client. Invoices shall be paid by the Client within 28 days of the Invoice Date.

Does the above seem like a good clause, or shall I try and get this figure down a little.