Agent paying my invoices by cash

[Lumiere]

Not all of them, just some from time to time ..

Should I be worried ? I do not understand where would he get cash in this type of business, he should receive all his payments from clients by BACS ..

[DaveB]

Not all of them, just some from time to time ..

Should I be worried ? I do not understand where would he get cash in this type of business, he should receive all his payments from clients by BACS ..

Sounds most unusual. Is he taking account of VAT etc? Do you give him a receipt for it and keep a copy or get a remittance slip showing the break down against your invoice?

Not nesseserily something to worry about, but definately not normal.

[Lumiere]

No, he deposits it directly into my account in his local branch (I can see it from my bank statement). VAT inclusive, figures match invoice.

I am just thinking, could it be an indication of something wrong going on .. e.g. serious cash flow problems or some sophisticated money laundering scheme ?

[Emigre]

No, he deposits it directly into my account in his local branch (I can see it from my bank statement). VAT inclusive, figures match invoice.

I am just thinking, could it be an indication of something wrong going on .. e.g. serious cash flow problems or some sophisticated money laundering scheme ?

Scenario? Pimp gets paid by clientco by electronic transfer. Pimp also has arrangement where he legitimises cash for drug dealer etc. Pays cash to your account and electronic transfer to drug dealer.

Why would pimp be receiving cash? Are you paid weekly? And I guess below £3k/week - the level they start asking questions or gets flagged. There's only so many cars you can sell.

In an inspection several years down the line you will be the one explaining why the receipts are in cash - he could have said anything when he put it there. I would ask for payments to be made the normal way. Professional business is not done in cash - unless its the oldest profession and even some of them I believe take cards now.

[krytonsheep]

Sounds strange. I wonder if he's adding a couple of hundred on to the invoices you're sending him. He then takes out the cash for the modified invoice, pays you the amount you originially invoiced for and pockets the difference.

[Lumiere]

Pays cash to your account and electronic transfer to drug dealer.

Why would pimp be receiving cash? Are you paid weekly? And I guess below £3k/week - the level they start asking questions or gets flagged.

Is it as simple as that, one can take a couple of grand out of his pocket and say this is my company's money from now on ? Shouldn't this money be accounted first ? If you made no withdrawals and all your clients pay electronically, how do you record this money ?

p.s. it was more than £3K on a couple of occasions ..

[Hex]

Sounds strange. I wonder if he's adding a couple of hundred on to the invoices you're sending him. He then takes out the cash for the modified invoice, pays you the amount you originially invoiced for and pockets the difference.

Sounds plausible. The specific agent adding his own cut on top of his agency's cut.

[Lumiere]

Sounds strange. I wonder if he's adding a couple of hundred on to the invoices you're sending him. He then takes out the cash for the modified invoice, pays you the amount you originially invoiced for and pockets the difference.

Can see this scenario working, but this is such a stupid thing to do, any investigation will instantly reveal the difference between contact values / timesheets / invoices etc. ..

could it be something related to BTL income ?

[Lumiere]

Sounds plausible. The specific agent adding his own cut on top of his agency's cut.

it's a freelance agent, he is "the agency"

[JoJoGabor]

Doesn't a BACS payment cost £20 or so? Maybe he has just worked out that by withdrawing and depositing cash he is saving that £20 EACH week to EAC contractor. It soons adds up. Very frugal!

DICLAIMER: I have no idea if any of this is ptrue or even remotely plausible.