As MMM says, 60 days is standard for direct - that is, January's work will be invoiced for in February and typically go on their end of February payment run, so the 60 days is typically for your work at the start of January. If there's an intermediary, i.e. you're working as an associate for a small consultancy then it could be longer.
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Agency Payment terms
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Originally posted by MrMarkyMark View Post60 days is certainly not normal, unless you are going direct.
Yes I have.
There's no way I would want someone holding 60 days of my money, simple as that.
If the agency goes bust, you will most definitely be the loser.
No one is too big to fail, look at Enron
This:-
Haven't had it myself for a while right enough.
For me, it's not enough to refuse a gig over.Last edited by jmo21; 5 January 2016, 13:54.Comment
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Originally posted by jmo21 View Post
For me, it's not enough to refuse a gig over.
Recently had someone try to change my payment terms, to 6 weeks, on extension, due to proposed agent / contract change.
Made it clear, that I would not extend on that basis.
Contract stayed as it is, with original agent, payment terms 4 days in bank after invoice.The Chunt of Chunts.Comment
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Originally posted by MrMarkyMark View PostFair enough, depends on your appetite for risk. You should always credit check them though.
Recently had someone try to change my payment terms, to 6 weeks, on extension, due to proposed agent / contract change.
Made it clear, that I would not extend on that basis.
Contract stayed as it is, with original agent, payment terms 4 days in bank after invoice.
On a change of contract/terms/extension like the OP or yourself, I'd push pretty hard for it not to happen. Would be a massive red flag for me mid-contract.Comment
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Originally posted by wolfgang View PostI have to disagree, your personal financial position is not their problem as they have engaged a business not an individual to complete the work, otherwise they would've gone with an employee <insert snide IR35 remark>.
It's none of your concern about their cashflow (or their systems being "unable" to handle anything other than 30 day terms).
Why does the agent need 30 day payment terms? Why is the agent's "system" incapable of dealing with (say) 7 day payment terms?Comment
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Originally posted by billybiro View PostWhy is the agent's "system" incapable of dealing with (say) 7 day payment terms?
In this case, it is up to you to negotiate, as hard as you would on rate.
I know of one single agency, at client co, contractors are on all sorts of payment terms with them, for this very reason i.e. they failed to negotiate.
Not everyone gets treated the same, obviously, any bedwetters need not applyThe Chunt of Chunts.Comment
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Originally posted by MrMarkyMark View PostUsually they are more than capable, its just that it will, often, cost them more to do regular payment runs.
In this case, it is up to you to negotiate, as hard as you would on rate.
I know of one single agency, at client co, contractors are on all sorts of payment terms with them, for this very reason i.e. they failed to negotiate.
Not everyone gets treated the same, obviously, any bedwetters need not applyComment
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Originally posted by billybiro View PostOf course, you're absolutely correct, and my questions in my previous post were largely rhetorical, but you've highlighted it again, "it will, often, cost them more to do regular payment runs". Something that is entirely, unequivocally none of your concern. Of course, you have to have the backbone to very clearly and vigorously explain this to the agent.
When they say they "can't", its absolute poppy cock.The Chunt of Chunts.Comment
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Originally posted by MrMarkyMark View PostUsually they are more than capable, its just that it will, often, cost them more to do regular payment runs.
In this case, it is up to you to negotiate, as hard as you would on rate.
I know of one single agency, at client co, contractors are on all sorts of payment terms with them, for this very reason i.e. they failed to negotiate.
Not everyone gets treated the same, obviously, any bedwetters need not apply
However, that is the agency's problem. Everything is up to negotiation. Debtor days = risk, whether you are going direct or through an agency.
From the agencies perspective debtor days to contractor = larger number on balance sheet.Last edited by clearedforlanding; 6 January 2016, 11:51.Comment
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A lot can also depend on the agency's experience/relationship with the end client - i.e., has a signed timesheet and invoice combination always been paid.The greatest trick the devil ever pulled was convincing the world that he didn't existComment
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