Reply to: Agency is going into liquidation!

[minstrel]

I'd hold back any timesheets for the minute if I were you.

I'm not sure about that.

If he's on weekly invoicing and getting paid within a few days then probably better to keep submitting them while he's being paid.

No sense in having weeks of unprocessed timesheets. Client is under no obligation to pay if they are not submitted through agency and liquidator will more than likely force timesheets to be submitted.

If timesheet and invoice is not submitted you will not be able to claim under PCG insurance.

[Boo]

I'm signed up to one of those credit check services

Which one, may I ask ?

and have my current agency automatically tracked on it.

I'm on weekly invoicing so things are up to date financially, but obviously I am keen to keep an eye on this!

Reckon I should get the CV updated? Or speak to clientco about it just in case I need to come direct?

I'd hold back any timesheets for the minute if I were you. Also, discretely mention it to your client and see if they're aware.

Boo2

[minstrel]

When your agency went bust were you able to carry on with the client?

The contract end date with my agency was within a few days of them appointing liquidator, so I was luckily able to negotiate with client to go through a different agency.

If you are PCG Plus and on weekly terms then you are in a relatively good position.

Have you seen the balance sheet of the agency? It's worth taking a look on Companies House. If they are trading insolvently then you may have grounds to terminate your contract and go direct/through another agency.

Last year's accounts are probably a bit out of date, but if they were solvent at last period end there is less chance you will end up with nothing if/when they do liquidate.

Have you heard anything from the liquidator yet? You said one has been appointed, so you should receive a formal notice from them. If you know who the liquidator is you can get in contact with them and they should be able to provide more details. They will product a statement of affairs which will basically tell you how much financial trouble they are in.

[Taita]

I'm signed up to one of those credit check services and have my current agency automatically tracked on it.

They warned me about an "adverse risk event" so did a credit check and it turns out they have appointed a liquidator to carry out a creditors' voluntary liqudation at the end of the month

Anyway spoke to my contact at the agency and they are "Changing their name" but I have had nothing in writing yet. Presumably some sort of phoenixing or assignment, I had a quick look at my contract but it is quite silent on what happens if the agency goes pop..

I'm on weekly invoicing so things are up to date financially, but obviously I am keen to keep an eye on this!

Reckon I should get the CV updated? Or speak to clientco about it just in case I need to come direct?

If you work for a financial agency based in the City then search the London Gazette and you might see it.

Voluntary liquidation sounds like packaged administration to me. Whatever they are up to, prepare for the worst and limit your exposure by pushing for quick payment of each invoice.

Whatever route they are planning, the object is to shield what assets remain from their creditors and you are a non-preferential creditor ----- way down in the pecking order behind HMRC and any other body that may have a mortgage, debenture or lien on the company's assets. Certainly let your client know your fears, they may be at risk too although they cannot legally divert money they owe the agency to you. However, forewarned is forearmed and the client may take some steps to protect their ongoing interests and yours.

Be careful how you raise the issue and remember you are a professional raising legitimate business concerns not an emotional victim of a crook! Oh and top marks for doing the 'business' thing and keeping an eye of your customer's ability to pay for your services!

[MyUserName]

Sounds like they could be in financial difficulty and these kind of "mistakes" happen when they are having cash flow issues. I had an agency go bust on me before.

Are you a member of PCG Plus? This includes agency default insurance which will pay out if agency goes bust. You'd need to check terms to see whether you would be covered if you took it up now, but you might be.

Yeah, I am in PCG Plus for this exact reason (I started to worry months ago about them).

When your agency went bust were you able to carry on with the client?

WHS - these are classic signs of an agency with a cash flow issue.

And not the first signs either, which is one of the reasons I refused to go monthly with them!

[centurian]

Sounds like they could be in financial difficulty and these kind of "mistakes" happen when they are having cash flow issues. I had an agency go bust on me before.

WHS - these are classic signs of an agency with a cash flow issue. Sat next to two contractors at the same ClientCo, but through a different agency. Over a period of 3-4 months, they were fed a long, long list of different mistakes and excuses - the most common being the director needing to sign off the payment is out of the office due to some sudden unexpected reason - their mother/father/child/brother/sister/dog is ill/dead etc.

The first time it happens, it could be genuine. But if it happens a second time, be prepared to quit

[minstrel]

Aha - a quick email to the person 'looking' into things with their MD on the chain has moved things along.

She replied that she would get back to me ASAP and I replied aplogising but I had assumed it was just a phone call she had to make and did not expect it to take all morning.

Got another email a few minutes later promising payment on Monday after a mistake was made entering my day rate.

Sounds like they could be in financial difficulty and these kind of "mistakes" happen when they are having cash flow issues. I had an agency go bust on me before.

Are you a member of PCG Plus? This includes agency default insurance which will pay out if agency goes bust. You'd need to check terms to see whether you would be covered if you took it up now, but you might be.

[MyUserName]

Aha - a quick email to the person 'looking' into things with their MD on the chain has moved things along.

She replied that she would get back to me ASAP and I replied aplogising but I had assumed it was just a phone call she had to make and did not expect it to take all morning.

Got another email a few minutes later promising payment on Monday after a mistake was made entering my day rate.

[MyUserName]

Glad to hear your got your money!

I get on well with the client (as far as I am aware!).

The agency has had issues before when they asked if I could go from weekly to monthly billing and then changed me anyway when I said no and then claimed they could not change back for a month. I am not an experienced contractor and had no relevant experience to draw on so I simply went bezerk and demanded full payment within an hour or I was going to raise the issue with the client.

I got paid after 58 minutes.

It has been quiet since then but this is a little worrying as now no one is replying to my emails. I have just sent another and ccd the director and asked whether they had everything they needed from the client and whether they wanted me to chase anything up as I sit near the accounts team.

[oversteer]

That doesn't sound good at all. If they don't pay an invoice in full, and they normally do, I would be worried that they've run out of cash or had facilities withdrawn. If they won't confirm in writing, today, that they will pay you the remainder on a specific date then I would personally take the view you won't get paid again.

How well do you get on with clientco? You don't want your agency to end up in a vicious cycle where their customers stop paying the bills, but you also don't want your clientco paying invoices, the agency going bust, with no comeback for you or your client, and you couldn't expect clientco to pay twice over.


Anyway, I got paid by a different company for last week, which matches up with the one the agent mentioned over the phone. Another ltd co to monitor !

Mildly concerned that the streetview for the office address shows a typical British suburban house but as long as they keep paying

[MyUserName]

Hmmm - just checked my account and found I have been paid less than half the invoiced amount.

Sent a quick email to the agent to ask whether there has been a 'mistake' and also ran a credit check - apparently "There has been a sharp reduction in shareholders funds".

No where near as serious as the OP's situation of course but it seems like there must be something in the air this week.

[dogzilla]

But even the fact that we are feeling the need to do these checks, shows that there is genuine business risk, regardless of whether or not we actually lose any cash.

Like the poor sod who told me his story yesterday. He got sick and was out for 14 months. He said he had to move into his sisters house and live with their young family because he couldn't work, in the end he had nothing and tulip loads of credit card debt. He said it took him 4 years before he was back on his feet again.

[centurian]

On a brighter note, should you lose an effing fortune, rest assured that you can notch up a few more marks on the HMRC Business Entity Tests.

But even the fact that we are feeling the need to do these checks, shows that there is genuine business risk, regardless of whether or not we actually lose any cash. I always do due dilligence on agencies when starting a contract (companies house, credit checks etc.), but these alerts are an excellent idea

[oversteer]

It's free, so why not? Keeping an eye on your important customers is an essential part of any business

[northernladuk]

Should keeping an eye on the agency like this go on some official "how to be cut out like a contractor" guide?

LOL Indeed. You could argue this is above and beyond that call even. How many small (or even larger) business go as far as this to be proactive? Still a great spot though. Pretty impressive.