Agency Payment terms Agency Payment terms - Page 3
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  1. #21

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    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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  2. #22

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    Quote Originally Posted by MrMarkyMark View Post
    60 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

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    ok, maybe normal is too far, but it I'd say it is common.

    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; 5th January 2016 at 13:54.

  3. #23

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    Quote Originally Posted by jmo21 View Post

    For me, it's not enough to refuse a gig over.
    Fair 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.

  4. #24

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    Quote Originally Posted by MrMarkyMark View Post
    Fair 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.
    Totally.

    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.

  5. #25

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    Quote Originally Posted by wolfgang View Post
    I 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>.
    If it's none of the agent's concern about your cashflow, then I'm afraid this also cuts the other way.

    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?

  6. #26

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    Quote Originally Posted by billybiro View Post
    Why is the agent's "system" incapable of dealing with (say) 7 day payment terms?
    Usually 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

  7. #27

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    Quote Originally Posted by MrMarkyMark View Post
    Usually 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
    Of 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.

  8. #28

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    Quote Originally Posted by billybiro View Post
    Of 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.
    This
    When they say they "can't", its absolute poppy cock.

  9. #29

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    Quote Originally Posted by MrMarkyMark View Post
    Usually 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
    I would add that a lot of agencies factor, and factoring rates are a lot more attractive on 28+ day terms than 7.

    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; 6th January 2016 at 11:51.

  10. #30

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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.
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