Advantages of using an Agency.

[Cr1spy]

Hello,

I'm about to start contracting for the first time. My perm role will shortly become redundant and the payout should be sufficient to cover me until the contact cash starts coming in.

Currently in discussions with two client companies. Both run by former colleagues. If either of these come to fruit, the plan is to work under a contract directly between my company (yet to be registered) and the client co.

Not having contracted before, I was wondering what are the advantages of working through an agency as apposed to directly. I've read a lot of negative posts and dealt with plenty of numpty agencies in my time, so not completely naive to the ways of the world.

Is a direct client contract the ultimate happy path for most contractors or does using an agency bring additional security?


PS Be gentle, this is my first post here!

[JamJarST]

The only reason that you would use an agent, is to find you the work, if you have found the work directly then you would not use an agent.

[Cr1spy]

That' what I thought. Pushy sods through aren't they?

I (regrettably) published my CV on a job web site several months ago and have been fending off agency phishing calls ever since!

[saptastic]

Hello,

I'm about to start contracting for the first time. My perm role will shortly become redundant and the payout should be sufficient to cover me until the contact cash starts coming in.

Currently in discussions with two client companies. Both run by former colleagues. If either of these come to fruit, the plan is to work under a contract directly between my company (yet to be registered) and the client co.

Not having contracted before, I was wondering what are the advantages of working through an agency as apposed to directly. I've read a lot of negative posts and dealt with plenty of numpty agencies in my time, so not completely naive to the ways of the world.

Is a direct client contract the ultimate happy path for most contractors or does using an agency bring additional security?


PS Be gentle, this is my first post here!

Try finding a contract direct - especially as a first timer - and you would have done well. I would expect most direct contracts are when you have a strong network who get in touch personally and directly and often for smaller companies. Otherwise agencies are a means to an end.

[TykeMerc]

The only reason that you would use an agent, is to find you the work, if you have found the work directly then you would not use an agent.

That's not entirely true, there is one other benefit and that's credit control/payment. With an agent involved (one of the bigger ones obviously) you can negotiate a payment schedule and not care how long it takes for the client to cough up.

That being said as long as you're reasonably on the ball with the client relationship and credit control, since you clearly don't need the agency sales effort there's not much value added by paying an agency even a small percentage.

[JamJarST]

That's not entirely true, there is one other benefit and that's credit control/payment. With an agent involved (one of the bigger ones obviously) you can negotiate a payment schedule and not care how long it takes for the client to cough up.

That being said as long as you're reasonably on the ball with the client relationship and credit control, since you clearly don't need the agency sales effort there's not much value added by paying an agency even a small percentage.

But at what cost? Surely if that was a concern then factoring the debt would be the better option.

[jmo21]

Hello,

I'm about to start contracting for the first time. My perm role will shortly become redundant and the payout should be sufficient to cover me until the contact cash starts coming in.

Currently in discussions with two client companies. Both run by former colleagues. If either of these come to fruit, the plan is to work under a contract directly between my company (yet to be registered) and the client co.

Not having contracted before, I was wondering what are the advantages of working through an agency as apposed to directly. I've read a lot of negative posts and dealt with plenty of numpty agencies in my time, so not completely naive to the ways of the world.

Is a direct client contract the ultimate happy path for most contractors or does using an agency bring additional security?


PS Be gentle, this is my first post here!

There are 2 possible advantages of using an agent.

- You may get paid quicker.
- If you are opted into the agency regs, if the end client goes bust, the agent still has to pay you for work done.

This leads directly of course to the major downside of more cost to the end client/less money for you of course.

[TykeMerc]

My personal opinion is I wouldn't involve an agency as I wouldn't see any real added value.

[alreadypacked]

That' what I thought. Pushy sods through aren't they?

I (regrettably) published my CV on a job web site several months ago and have been fending off agency phishing calls ever since!

Go back to where you published your CV and put in a very high day rate, works for me don't get many calls from agents. When I do apply for something I tell them that's my CHF rate.

[northernladuk]

You could also make sure you have read all the information at the right hand side, all the first time contractor guides and the stickies in the forums.

Lots of good info there.