Reply to: OPUS recruitment

[craig1]

I start with my default position of weekly bill, weekly pay and tend to play hard-ball once offered the role. Most agencies will buckle, it's my experience that the best agencies offer it anyway. There are some that just won't budge from monthly bill, monthly pay, they tend to be the budget ones with disastrously low margins though and you need to be right on top of them from the first day the first payment is late.

Once you've been around an industry for a while, you get to know the typical margin profile of the key agencies. Those on 15%+ margins have absolutely no excuse for not paying weekly bill, weekly pay and get no sympathy in negotiations. Those on <5% margins are probably going to be cash strapped and need to be carefully credit managed but get a bit more sympathy in initial payment terms negotiations as I'm going to be getting more money from them than normal.

Also, remember that this isn't a completely one-sided agency driven contract, everything's up for negotiation in the contract if you know what you're doing. If you don't know what you're doing then there are good law firms that understand contracting law and will do it for you for a very reasonable price.

[Safe Collections]

The problem with monthly payment is that it's often 2-3 payment cycles before it becomes clear you are going to get caught, which can mean a difference between losing thousands and tens of thousands.

This!

[centurian]

Had a gig with this bunch a few years back - had no issues. Every invoice paid on time.

But then, all those agencies that have gone bust were usually good payers until they got into trouble, so any agent is only as good as their last invoice payment.

The problem with monthly payment is that it's often 2-3 payment cycles before it becomes clear you are going to get caught, which can mean a difference between losing thousands and tens of thousands.

[TheFaQQer]

So I asked for weekly and I was advised there is a 3% charge per invoice for that...

Doesn't sound right to me.

What doesn't sound right?

[TheFaQQer]

exactly - that was the point I was making. I run my business to collect payment NET 7.

So negotiate that. The agency has offered you that facility, at a cost. If your demands cost them anything, then why shouldn't they pass on those costs to you?

If you can't agree on the payment terms, then walk away or back down.

Maybe your business mentors should have explained that contract negotiation requires negotiation?

[malvolio]

My business mentors always told me to get invoices paid as soon as you can.

The last thing I want is a business going out of business owing me a huge chunk of change that I'll never see.

Negates the risk if invoices are paid weekly.

I pay my own salary twice a month (actually inline with my last permie job).

PCG Plus - free agency and client default cover...

[Safe Collections]

exactly - that was the point I was making. I run my business to collect payment NET 7. I wasn't sure what the other poster was getting at with the fruit picker comment.

Yeah they look fine, but then I've seen a 'clean credit' client go under just the other week because of bad management. It happens.

A credit report isn't a magic bullet or guarantee, but we would say it makes a good starter for ten

With agencies we always recommend taking a careful look at the previous businesses the directors and/or shareholders have been involved in as well. A long list of short lived companies is a common indicator of what we call "pop up" agents.

That is like mushrooms they pop up overnight and disappear again just as quick. Normally with a contractors payment in their back pocket... But then maybe we are just jaded.

[stevieg83]

Its your business you can set any terms you wish We have seven day payment terms

If the agency in question is in Bristol they look OK at a glance. Nothing untoward screams out from the credit report.

You do get a credit report on any new client/agency don't you???

exactly - that was the point I was making. I run my business to collect payment NET 7. I wasn't sure what the other poster was getting at with the fruit picker comment.

Yeah they look fine, but then I've seen a 'clean credit' client go under just the other week because of bad management. It happens.

[Safe Collections]

are businesses not paid weekly like?

Its your business you can set any terms you wish We have seven day payment terms

If the agency in question is in Bristol they look OK at a glance. Nothing untoward screams out from the credit report.

You do get a credit report on any new client/agency don't you???

[stevieg83]

My business mentors always told me to get invoices paid as soon as you can.

The last thing I want is a business going out of business owing me a huge chunk of change that I'll never see.

Negates the risk if invoices are paid weekly.

I pay my own salary twice a month (actually inline with my last permie job).

[kevpuk]

In my experience, agencies can vary in their payment terms. Current gig I had the choice of weekly or monthly, next gig have no choice - monthly only.

Doesn't really matter to me - even in permie~land one is usually paid monthly - I suppose it is handy in the early days of contracting to have a steady income stream over shorter intervals, but once you are up and running, can't see it matters?

I pay my salary once a month, claim back expenses and mileage once a month, pay childcare, insurances etc. once a month - monthly works just fine. After all, it is not as if there is much interest to be earned from having a week's cash in the bank.....

Still, on the 3% levy point, that would not be acceptable to me - dunno the legality and all that, mind - IANAL

[stevieg83]

I thought you were a business not a fruit picker

are businesses not paid weekly like?

[DodgyAgent]

Has anyone used these guys before?

Just got a contract with them and they want to pay invoices monthly but historically I've always had invoices settled weekly.

I fired them an email to see if they would accommodate that request.

Any advice?

I thought you were a business not a fruit picker

[stevieg83]

So I asked for weekly and I was advised there is a 3% charge per invoice for that...

Doesn't sound right to me.

[BigRed]

A few seem to resist weekly but try pointing out you have a lot of expenses to cover and can't wait that long.

I personally don't like a bunch of chancers having too much of my money but I'm stuck with it on this contract.

The lot I'm with tried telling me that they hadn't been paid by the customer so were delaying my payment once. They told another guy he had underclaimed his overtime so they were witholding his whole invoice until the next monthly run