• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

  • You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
  • You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
  • If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

Previously on "Agency's terms of payment"

Collapse

  • Not So Wise
    replied
    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
    Last edited by Not So Wise; 15 May 2012, 15:39.

    Leave a comment:


  • BolshieBastard
    replied
    Originally posted by Xenoid View Post
    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 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.
    Surely when your co is due to be paid is one of the first things you check in a contract?

    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.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by Xenoid View Post
    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.
    Why do people assume stuff they don't like is legal all the time???? How many companies try and slap illegal practices on you in a written contract? And the other thing where someone gets a bit upset at customer service and asks if they can sue the company etc....

    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.

    Leave a comment:


  • TheFaQQer
    replied
    Originally posted by Xenoid View Post
    However, what is the agency is not willing to negotiate. Do I just have to go with it?
    Either take it or walk. That's the only choice if there is no negotiation.

    Leave a comment:


  • Hex
    replied
    Originally posted by Xenoid View Post
    Thanks 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.
    If there are no specific terms of payment in your contract then the default terms are 30 days from receipt of invoice. These are standard business terms.

    Last Thursday in the month is almost certainly within these terms.

    Leave a comment:


  • Xenoid
    replied
    Originally posted by cojak View Post
    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.
    Thanks 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.

    Leave a comment:


  • cojak
    replied
    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.

    Leave a comment:


  • Xenoid
    replied
    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.
    Last edited by NotAllThere; 15 May 2012, 19:04. Reason: Fixed typo

    Leave a comment:


  • BolshieBastard
    replied
    Originally posted by witchfinder general View Post
    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
    And with Faster Payments, agents should be made to pay an invoice within 24 hours of it hitting their in box.

    Leave a comment:


  • witchfinder general
    replied
    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

    Leave a comment:


  • northernladuk
    replied
    Originally posted by Helpdesk67 View Post
    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.
    Might also be because a lot has happened in the 6 years?

    Leave a comment:


  • Helpdesk67
    replied
    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.

    Leave a comment:


  • gingerjedi
    replied
    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.

    Leave a comment:


  • BolshieBastard
    replied
    Originally posted by VirtualMonkey View Post
    just 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
    Well I just laughed when the agent mentioned 60 day terms to me but, each to their own.

    Leave a comment:


  • SussexSeagull
    replied
    Originally posted by Wanderer View Post
    So 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.
    Plus one hears of companies finding reasons not to pay final invoices.

    Leave a comment:

Working...
X