Contractor > Agency set up
Payment periods can vary a lot, worst i have seen is 90 days on monthly invoices best i have seen is same day on weekly invoicing. Many people seem to accept 30 days on monthly invoices for some strange reason.
Personally bad experience has taught me to never accept a risk exposure* of more than aprox 5 weeks. eg: 30 days on weekly invoices or 7 days on monthly. Anything else is just begging to get badly burned
*And it is a risk, agency's can and do go bust with scary regularity and as they generally have little to no assets your chance of getting moneys owed are virtually nil
Contractor to client direct
30 days on monthly invoices is generally accepted norm
But whatever the terms you agree to, make sure it is in the contract, do not just accept that the agent/client tells you verbally. And if what is in the contract contradicts what the agent tells ("Sure contract says 30 days, but we always pay next day") expect that sooner or later you will be getting paid at 30 days
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Reply to: Agency's terms of payment
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Previously on "Agency's terms of payment"
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Originally posted by Xenoid View PostI have read this thread and its a bit shocking actually. I am an IT Contractor and recently started a new contract. (Subcontracting). The agency I work through has not told me that invoices are paid on the last Thursday of the following month. Which means I will have to work a month and wait approx another for the invoice to be paid?
Is this legal and is there a regulatory body for agencies that has something around invoices being paid? Do you reckon if the agency refuses to bring the pay date forward that I should talk to the client and threaten to break the contract?
That might scare the agency in changing their payment schedule.
I wouldnt sign any contract if the things I didnt know about was how much my co was being paid or when it would be paid.
If you didnt raise this with the agent, then, you have accepted their payment terms by default.
You dont have to be a contractor to understand and act on these things.
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Originally posted by Xenoid View PostIs this legal and is there a regulatory body for agencies that has something around invoices being paid? Do you reckon if the agency refuses to bring the pay date forward that I should talk to the client and threaten to break the contract?
That might scare the agency in changing their payment schedule.
If the agency gets even a whiff that you don't understand payment terms and automatically assume they are doing something illegal they may not be that bothered you threatened to walk IMO.Last edited by northernladuk; 14 May 2012, 13:43.
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Originally posted by Xenoid View PostThanks for the advise. However, what is the agency is not willing to negotiate. Do I just have to go with it? is there any rules to make them pay earlier? there are no terms of payment in my contract.
Last Thursday in the month is almost certainly within these terms.
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Originally posted by cojak View PostYou're a new contractor, aren't you?
Negotiate payment terms in your contract, otherwise make sure that you have enough savings to cover the first gap.
Threatening to walk is not the way to enhance your reputation.
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You're a new contractor, aren't you?
Negotiate payment terms in your contract, otherwise make sure that you have enough savings to cover the first gap.
Threatening to walk is not the way to enhance your reputation.
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Invoice paid 30days Later
I have read this thread and its a bit shocking actually. I am an IT Contractor and recently started a new contract. (Subcontracting). The agency I work through has now told me that invoices are paid on the last Thursday of the following month. Which means I will have to work a month and wait approx another for the invoice to be paid?
Is this legal and is there a regulatory body for agencies that has something around invoices being paid? Do you reckon if the agency refuses to bring the pay date forward that I should talk to the client and threaten to break the contract?
That might scare the agency in changing their payment schedule.
Leave a comment:
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Originally posted by witchfinder general View PostThe whole 28-30 days thing seems to be be standard with a lot of agencies these days, my gripe with it is that it makes it very hard to judge exactly when your money is going to hit your account (there seems to a variance depending on the time of day they make payment)and by extension it makes it hard to schedule your outgoings
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The whole 28-30 days thing seems to be be standard with a lot of agencies these days, my gripe with it is that it makes it very hard to judge exactly when your money is going to hit your account (there seems to a variance depending on the time of day they make payment)and by extension it makes it hard to schedule your outgoings
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Originally posted by Helpdesk67 View PostCheers guys, it was just a bit of a shock to the system, money is tight as I was out of work for a few weeks and this was the last thing I needed. I contracted between 2003 and 2006 when I went full time and I have been back contracting since September, and have ALWAYS been weekly paid, 1 week in arrears, assumed that this was standard practice. I guess I have just been very lucky in the past.
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Cheers guys, it was just a bit of a shock to the system, money is tight as I was out of work for a few weeks and this was the last thing I needed. I contracted between 2003 and 2006 when I went full time and I have been back contracting since September, and have ALWAYS been weekly paid, 1 week in arrears, assumed that this was standard practice. I guess I have just been very lucky in the past.
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I'm on 30 days payment terms paid weekly, I keep a spreadsheet with the dates I should be paid alongside the submitted timesheet date.
It's the only way I can keep track.
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Originally posted by VirtualMonkey View Postjust about to move from 30 day payment terms to 60 days.
Not great in terms of cashflow right now but I think of it as an addition to the warchest.
When the contract finishes at the end of January I'm still being paid through to 31st March
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Originally posted by Wanderer View PostSo your warchest is held by another party who could easily go out of business and not pay you? I'll have the money in my own company bank account thank you very much.
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