Reply to: 45 Day Payment Terms - Ridiculous or what?

[yasockie]

Unless you have <2months in your warchest, who cares? It just means you carry on getting money for longer after you leave which is always nice.

And how do you think banks make money? I just negotiated 7 days payment terms, I could potentially finish the contract already and have the most of the money secure. I still worry about handing over the code prior to receiving the payment, I'd be a wreck if I had to code or two months risking that they challenge some tiny bit and sewer our relationship w/o paying. The risk is just too large in my case and I would not accept...

[Wanderer]

Unless you have <2months in your warchest, who cares? It just means you carry on getting money for longer after you leave which is always nice.

Yeah sure. Hey, how about you just give me your warchest to look after, I'll take good care of it. You can trust me, I'm an agency. I'll never go bust or try and withhold payment from you due to a dispute.

[BolshieBastard]

Ouch!

Did not know that

Sorry, didnt mean to appear heavy handed. Bolshie's a pussy cat really!

[JoJoGabor]

I am currently on 30 day payment terms, reality is more like 45 days, and I'm not happy, about to inform they I will be at home job searching until the money owed appears in my account.

Most clients when going direct will try to stretch payment terms so next time I will insist on going on 14 days or less. I am not willing to expose myself to over £20k worth of risk

[d000hg]

Unless you have <2months in your warchest, who cares? It just means you carry on getting money for longer after you leave which is always nice.

[NickNick]

Seems like this is more regular than I thought. In almost 7 years of contracting this is the first time I've met 45 day terms.

I've only ever encountered longer payment terms when going direct. Last direct contract had 60 day terms, but in reality payment was usually less than 7.

[northernladuk]

Seems like this is more regular than I thought. In almost 7 years of contracting this is the first time I've met 45 day terms.

I am going to try to rock the boat and get this changed, and most of all get that ghastly clause that says they won't pay unless the client co pays, removed.

Personally I wouldn't. It is only a slight risk and it is one that has been caused by yourself. Rocking the boat will only a) reduce the risk by 15 days max b) make you look like a right pain in the ass cause you agreed to it. Nothing more unprofessional than someone agreeing to something that isn't too unreasonable and then moaning about it after.

And you think they will remove a clause that cover's there ass once the horse has bolted.

Wait until renewal and then kick up a fuss IMO.

[Peter Loew]

Seems like this is more regular than I thought. In almost 7 years of contracting this is the first time I've met 45 day terms.

I am going to try to rock the boat and get this changed, and most of all get that ghastly clause that says they won't pay unless the client co pays, removed.

[Safe Collections]

We can think of one large household name business that have stated payment terms of 90 days. The unofficial payment terms are around 120+ days.

So it could be worse

[SimonMac]

KUATB. His contract has a clause saying he wont get paid until the agency gets paid. Therefore if agency dont get paid and he's opted out, he'll never see that money owed.

Ouch!

Did not know that

[BolshieBastard]

What has opting out got to do with payment terms?

KUATB. His contract has a clause saying he wont get paid until the agency gets paid. Therefore if agency dont get paid and he's opted out, he'll never see that money owed.

BTW, I also agree with wandered. Anyone reviewing that contract should have flagged the payment terms.

[SimonMac]

My advice to you is:

1. Invoice weekly
2. Don't opt out of the agency regs next time
3. Not taking away from your negligence in signing the contract without reading it, but the people you got to review it should have flagged the draconian payment terms, in my opinion.

What has opting out got to do with payment terms?

[MarillionFan]

I am working through a small consultancy and only now have they said that payment terms are 45 days. I think this is absurd. Yes, I should have made sure prior to starting work but it all happened so fast!

When I questioned this, I was told the auto email I get back from the system is a marking for getting paid up to 45 days later. I am thinking of invoicing every 2 weeks rather than monthly.

Clearly they await payment from the client co prior to paying me.

Anyone on absurd payment terms like this?

P

45 Days. One full month, Plus 14 days.

Just been paid though, thank fook.

[Peter Loew]

Yeah, I had an agency try to "sell" it to me that way. "Look, if we pay you on 45 day terms then you will still be getting paid for 6 weeks after you leave!" Yeah, right. Great idea. Not. I'll have my money as soon as I can get my sticky mitts on it thank you very much.

Peter Loew, they saw you coming mate. They even slipped in a clause saying you won't get paid until they do which they will use if the client doesn't pay them. I hope you have agency failure insurance because that is an awful lot of credit you are extending to them.

My advice to you is:

1. Invoice weekly
2. Don't opt out of the agency regs next time
3. Not taking away from your negligence in signing the contract without reading it, but the people you got to review it should have flagged the draconian payment terms, in my opinion.

Funnily enough I was about to renew my PCGPlus membership.

I'm not worried about the client not paying (they're a huge well known client). I'm not THAT worried about the consultancy going bust either. I am worried about late payments by the client which will mean hell for me. I will outright refuse to work if payments take longer than 45 days / 6 weeks in any case. No choice but to test this. I have 4 weeks to go before payment.

Btw, this isn't an agency, they're a consultancy with different clients. I and other contractors are considered 'associates' to this consultancy.

[tarbera]

lucky you

I am working through a small consultancy and only now have they said that payment terms are 45 days. I think this is absurd. Yes, I should have made sure prior to starting work but it all happened so fast!

When I questioned this, I was told the auto email I get back from the system is a marking for getting paid up to 45 days later. I am thinking of invoicing every 2 weeks rather than monthly.

Clearly they await payment from the client co prior to paying me.

Anyone on absurd payment terms like this?

P

I am 90 days EOM with one of my directs