Agency Payment Arrears

**Jeebo72** · 26 February 2010, 11:37

I always insist on 7 days. Be prepared to walk if you don't get your way. That's the only way. If you're in any doubt, they have the upper hand.

**Hawkeye** · 26 February 2010, 11:43

7 days is the preference but it works out well for them if they sit on the cash for as long as possible.

First conversation was we will pay monthly with 21 days arrears. Then went to weekly with 21 days arrears. I keep pointing out that there is no difference!

I think 21 days is too high. What if they go into administration?!? Am going to call her again once I am off this conference call as have emailed her and she is ignoring it so far.

**questiontime** · 26 February 2010, 11:45

Have they been paying on time? If no, your exposure is higher, but do you want to walk away in this tough market?

But, if they have a history of late payments, then try hard to push it down (if they pay late, does 14 and 21 days make any difference ;-) ) or include a clause that gives you an option of immediate termination in case they do not pay on time.

Originally posted by Hawkeye View Post

Quick question.

How hard do you push when negotiating your contract on the agency arrears for payments?

I have been complaining to the agent this week about their 21 day arrears and am pushing them for a 14 day arrears at the most. Am slightly nervous they might pull the rug from under me on this contract but not sure how far I can take it before they get really annoyed at me.

I really don't know why I can negotiate for others on tenders etc but for myself I struggle.

Thanks

**Jeebo72** · 26 February 2010, 11:46

Originally posted by Hawkeye View Post

I think 21 days is too high. What if they go into administration?!?

Exactely. They might also say that's how the client pays us, but again, this is not your concern. If it means that much to you, then stick it out. But if you can't affoard to walk away, then be prepared to take whatever they offer.

How long before you start? If you threaten to walk away with days to go, it plays into your hands....

Best of luck.

**Hawkeye** · 26 February 2010, 11:49

Meant to start on the 8th and have to give 5 days notice with the current client co. Am hanging onto the current contract in case.

Will see how it goes. Already gone through the credit checks and they are half way through the reference checks too.

Need to decide if I am prepared to walk before I make the call.

Thanks for the help!

**Zippy** · 26 February 2010, 11:53

Hiya Hawkeye. I'd guess you are not thinking of yourself as a business as you do when hiring (and making mincemeat of agents

). 21 day terms are a risk to your business and the agent will understand this (but won't tell you that).
I'd just keep saying the same thing and point to a couple of recent examples where agencies have gone out of business.

Best of luck

**Hawkeye** · 26 February 2010, 11:57

I need to snap out of it and just go for it. I think she knows exactly where I am coming from on this. Just trying to reduce my risk slightly.

**Drewster** · 26 February 2010, 13:25

Originally posted by Hawkeye View Post

I need to snap out of it and just go for it. I think she knows exactly where I am coming from on this. Just trying to reduce my risk slightly.

I am certain she knows exactly where you are coming from.... she wants you to bear the risk - end of. What she wants and what she is prepared to settle on is very different.

You "want" to be paid instantly with no risk at all........ but you won't get it
They "want" you to take all the risk and only pay you after they have been paid (and taken their cut, plus any interest they can squeeze)....

Its just risk balancing and negotiation..... good luck

**Menelaus** · 26 February 2010, 13:32

One of the methods of focussing the minds here - that might certainly focus minds - is to tell them that your rate is based on being paid in n days: they're welcome to pay you in n days +n but if they do then your rate increases by a proportional amount.

If you tell them that if they want you they'll have to reduce their margin to get you to share the risk then they're more likely to be amenable to it. The alternate would be if they then said "OK we'll pay you in two days" - you might be bounced into a minor pay rate reduction.

Agency Payment Arrears