Hi,
I am currently operating through my own LTD company, and am working at a client with an agency in the middle. My contract is with the agency. The agency's contract is with the client.
My contract is due for extension and the client seems willing. I am discussing with my agent about reducing his margin and he is suggesting that increasing the payment terms from 30 to 60 days could be useful to him.
As I have a reasonable warchest in the LTD company and personally, I am in no hurry for the payment, so if it came after 60 days instead of 30, that wouldn't be an issue.
What sort of things am I opening myself up to?
- increased risk that the agency goes bust? i.e. the agency spends the money from the client he gets at 30 days and there's nothing left at 60 days.
- lost interest in the bank
- a small shift in the period in which I would pay taxes
- anything else?
Just want to be sure that I'm not missing something obvious, as currently it seems workable.
All thoughts welcome,
Thanks,
GB
I am currently operating through my own LTD company, and am working at a client with an agency in the middle. My contract is with the agency. The agency's contract is with the client.
My contract is due for extension and the client seems willing. I am discussing with my agent about reducing his margin and he is suggesting that increasing the payment terms from 30 to 60 days could be useful to him.
As I have a reasonable warchest in the LTD company and personally, I am in no hurry for the payment, so if it came after 60 days instead of 30, that wouldn't be an issue.
What sort of things am I opening myself up to?
- increased risk that the agency goes bust? i.e. the agency spends the money from the client he gets at 30 days and there's nothing left at 60 days.
- lost interest in the bank
- a small shift in the period in which I would pay taxes
- anything else?
Just want to be sure that I'm not missing something obvious, as currently it seems workable.
All thoughts welcome,
Thanks,
GB
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