Reply to: How long to wait till getting paid ?

[NetwkSupport]

THe cash flow aspect totally depends on your home situation and if you have the balls to just say to yourself "f### it" i'll just to it.

Do a bit of research, put some feelers out with agencies and keep a mental note of how many responses/interviews you get compared to how many jobs you apply for.

I myself did exactly the same thing as you, I had no cash flow behind me AT ALL, but not having a family of my own (but I do have a mortgage) i just handed in my notice, knowing full well i would be in BIG trouble if i didnt land a contract ASAP. Luckily with 2 weeks left of my permie notice to serve I had two job offers - one of which I took was a 6 month contract that pays me more in a week than i used to get in a whole month!!!!!!

Suffice to say I'm not making any recommendations, your a grown adult and can make your own decisions but just thought i'd let you know that whatever happens another avenue always opens up, and more importantly if you dont take a risk here and there you wont change anything..from a personal point of view taking the risk completely changed my life for the better.

[Doddy]

payment terms

I have been surprised by the amount of luck I had when I chucked the permie job for this lark last April. I did not consider when I would get paid, but it worked out OK - which was good fortune not good planning.
My pay period ends on the last Friday of each month. Although I am paid monthly, I submit weekly timesheets to my umbrella who bill the agency, and weekly timesheets to the company I do work for. I receive my money 2 weeks after the end of the last Friday period - it takes that time to go from Co to Agency to umbrella. I get paid every four weeks or every 5 weeks depending on how things fall. I joined during the last month of a pay period which mean that I was paid three weeks later - a week before I would have received my salary - which meant I could 'manage' for another 4 weeks until i was paid again. Agency have been good and umbrella have been great which makes me wonder when everything will go 't*ts-up'. PM me for umbrella details if you wish.

[BillHicksRIP]

Just to add to what I wrote earlier, I took a gamble when leaving my (25k p.a.) permie job, as I had no savings, no way of saving 3 or 6 months worth of mortgage/bills, and no family to borrow it off. A contract appeared that paid well, I applied thinking nothing of it, got the gig, and before handing my notice in, checked if I could actually survive till I first got paid. Prosperity 4 shafted me by not giving me an interim payment, which they assured me I'd get. My agency had been paying them weekly since startring work. In the last 2 weeks before they actually coughed, I couldn't even afford the B&B that I was paying for to be near the job. They refused to help, didn't care. I very nearly ended up completely broke thanks to them.

Not everyone can have proper financial backup when first starting contracting, which is why I was advising to choose the brolly carefully. As soon as you're on your first contract, save like crazy.

[freshblue]

I was able to ask Parasol to use softly softly where needed and then turn up the pressure when the client started having "cashflow issues"... They got my cash and I refused a renewal with the client.

[boredsenseless]

MSB pay weekly - invoice is faxed over by noon wednesday, money is paid by BACS and clears on the Monday, although they have paid me by CHAPS sometimes. Most umbrellas will pay the same day the money clears, although it normally costs extra. Parasol offer this as long as you drop them an email 24 hours in advance.

Paying the day the money clears is fine in principle but do they actively make sure the money is paid on time in the first place?

If the end client takes 2 months to pay and you expected 2 weeks the fact the umbrella turns it round on clearance isn't really a big plus point is it as you've missed 6 weeks. At least if you do it yourself you can phone email, write letters and generally get in the face of accounts to the point they pay on time more often than not

[Lucifer Box]

no but i've come across my wifes t1ts

I've come across your wife's tits as well, EO. She loved it, the saucy minx.

[EternalOptimist]

Ask your umbrella. The only real-world benefit to having agencies or umbrellas in the loop is that they pay you whether or not the client has paid them

Have you ever come across an umbrella that pays you whether they have been paid by the agency or not?
Doubt it

Agencies, yes. Umbrellas, no.

no but i've come across my wifes t1ts

[mcquiggd]

MSB pay weekly - invoice is faxed over by noon wednesday, money is paid by BACS and clears on the Monday, although they have paid me by CHAPS sometimes. Most umbrellas will pay the same day the money clears, although it normally costs extra. Parasol offer this as long as you drop them an email 24 hours in advance.

[hyperD]

So it's sensible advice to say "don't go contracting unless you have 2 years money behind you"?

How is anyone with a family to run going to build up 2 years' excess salary?

No, I think the difference here is that hopefully being paid by an agency/umbrella et al you will be paid within a few days/week/weeks of invoicing - hence the cost you pay out of [your rate/paid by client] for "factoring".

When you are dealing direct with a client, including global blue chips, you need [or they tell you] to agree the T&Cs of the payment terms. Funnily enough, the big guys tend to have some sort of "human rights, enforced business ethics" type shit that promises to pay you within 28 days or they'll whip themselves senseless. It's the smaller companies that tend to hold back with payment saying "we are waiting for a large client to pay us before we can pay you" etc etc

In all honesty, the chances of you still obtaining future work from a large company while suing about a week's worth of overdue invoices is slim. However, I have successfully obtained the backdated interest payment for an invoice that was 6 months overdue for a blue chip because they (a) had lost th original invoice and (b) had moved the entire operations to Bangalore.

To be honest, moving accounts department to Bangalore has given me the biggest boost to my turnover since laying of UK based accounts department. I'm all for it...

[BlasterBates]

yes but being 3 months is nothing, it flies by, so think about it.

[freshblue]

I used Parasol on a direct contract and they were fine but as stated just remember that the payment terms are not in their control and they won't be agressive chasing your client for money as they will assume you want a long term relationship.

Using a brolly when going direct can also be useful for the insurances and support but make sure you get the payment terms you want.

[PerlOfWisdom]

What a naive statement.



We're trying to give a bit of decent advice here Perl.

Don't listen to him, Perl is just showing his gig wotsits.

So it's sensible advice to say "don't go contracting unless you have 2 years money behind you"?

How is anyone with a family to run going to build up 2 years' excess salary?

[Lucifer Box]

With my biggest direct client the payment terms are 90 days, take it or leave it. This is not unusual with mega-corps.

[BlasterBates]

If you don't thing you'll be able to get a contract in less than 3 months, you shouldn't be in IT, never mind contracting.

What a naive statement.



We're trying to give a bit of decent advice here Perl.

Don't listen to him, Perl is just showing his gig wotsits.

[PerlOfWisdom]

I agree with the above. You should have at least six months cash behind you, and I have to say even that isn't enough. With commitments especially if you have a family, I would be conservative and have enough dosh to live on for 2 years. Contracting on the edge is for single guys that can go tomato picking and live in a bedsit.

If you don't thing you'll be able to get a contract in less than 3 months, you shouldn't be in IT, never mind contracting.