Just wondered how many people here run credit checks on their agency before accepting a gig?
There seems to be a lot of small agencies around, set up recently with no accounts or credit rating available. With the switch to monthly invoicing (rather than weekly) the credit risk has gone up considerably as it could be nearer 2 months before the first invoice is due for payment at which point I'm not keen to find out that the agency can't pay and owe me (say) £20k+.
When I get the contract reviewed I'm going insist that an "administration" clause is inserted so that in the event of the agency going into administration or liquidation that this is specifically noted as a material breach of contract and myco is free to contract direct with the client or another agency as I see fit.
Any thoughts on this matter and other approaches/experiences would be useful please.
thanks
Rob
There seems to be a lot of small agencies around, set up recently with no accounts or credit rating available. With the switch to monthly invoicing (rather than weekly) the credit risk has gone up considerably as it could be nearer 2 months before the first invoice is due for payment at which point I'm not keen to find out that the agency can't pay and owe me (say) £20k+.
When I get the contract reviewed I'm going insist that an "administration" clause is inserted so that in the event of the agency going into administration or liquidation that this is specifically noted as a material breach of contract and myco is free to contract direct with the client or another agency as I see fit.
Any thoughts on this matter and other approaches/experiences would be useful please.
thanks
Rob
Comment