Agency Payment terms Agency Payment terms
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  1. #1

    Nervous Newbie


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    Default Agency Payment terms

    I have secured my first contact and have been advised by the agency the following with regards to the payment terms:
    - Getting a client to sign my timesheets weekly
    - Client provides the agency with monthly authorized report
    - Me invoicing agency at the end of each month
    - Agency pays my company within 28 days upon receipt of the authorized report from a client

    Experienced contractors, please advise whether these common standards? Is it possible to bend these rules and request to invoice the agency on weekly basis instead?

  2. #2

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by 7656 View Post
    I have secured my first contact and have been advised by the agency the following with regards to the payment terms:
    - Getting a client to sign my timesheets weekly
    - Client provides the agency with monthly authorized report
    - Me invoicing agency at the end of each month
    - Agency pays my company within 28 days upon receipt of the authorized report from a client

    Experienced contractors, please advise whether these common standards? Is it possible to bend these rules and request to invoice the agency on weekly basis instead?


    Seems fairly normal. How long is the contract for and what is the role?


    Unless you're doing a very basic job, it's not usual to be paid (or invoice) weekly.
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  3. #3

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    Quote Originally Posted by 7656 View Post
    I have secured my first contact and have been advised by the agency the following with regards to the payment terms:
    - Getting a client to sign my timesheets weekly
    - Client provides the agency with monthly authorized report
    - Me invoicing agency at the end of each month
    - Agency pays my company within 28 days upon receipt of the authorized report from a client

    Experienced contractors, please advise whether these common standards? Is it possible to bend these rules and request to invoice the agency on weekly basis instead?
    First contract? Agency should be flexible on those 28 days PT in the first few months. You are going to need cashflow. A week post invoice would be reasonable.

  4. #4

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    These are the standard "worse case" terms, I usually class anything better than this a win!

    Remember you are effectively offering the agency a line of credit for up to days, this in itself carried an inherent risk so some due diligence on the agency is advised
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

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  5. #5

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    Quote Originally Posted by clearedforlanding View Post
    First contract? Agency should be flexible on those 28 days PT in the first few months. You are going to need cashflow. A week post invoice would be reasonable.
    Not too sure about that. Your cashflow isn't their problem, particularly if their processes are set to 28 days. We have plenty of threads evidencing agents are not often flexible on payment schedules...

    That said they maybe pulling his pants round his ankles when it comes to his cut which reading the original post is highly likely. They may show some flexibility due to the amount of free money they are making from the OP.
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  6. #6

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    Quote Originally Posted by clearedforlanding View Post
    First contract? Agency should be flexible on those 28 days PT in the first few months. You are going to need cashflow. A week post invoice would be reasonable.
    Agency doesn't care if it's your first contract, in fact if they small fresh blood they will probably use that as an excuse to squeeze you more
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

  7. #7

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    Quote Originally Posted by northernladuk View Post
    Not too sure about that. Your cashflow isn't their problem, particularly if their processes are set to 28 days. We have plenty of threads evidencing agents are not often flexible on payment schedules...

    That said they maybe pulling his pants round his ankles when it comes to his cut which reading the original post is highly likely. They may show some flexibility due to the amount of free money they are making from the OP.
    Quote Originally Posted by SimonMac View Post
    Agency doesn't care if it's your first contract, in fact if they small fresh blood they will probably use that as an excuse to squeeze you more
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

  8. #8

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    This is the first contract (6 months term). The role is - IT Consultant (Tier 4).

    I am really not comfortable with these terms as I am left out of income for nearly 60 days. Also I am not sure if I am paid should a client company decide to cancel the contract half-way through...

    Has anyone here had a case when you were able to renegotiate these rules?

  9. #9

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by 7656 View Post
    This is the first contract (6 months term). The role is - IT Consultant (Tier 4).

    I am really not comfortable with these terms as I am left out of income for nearly 60 days. Also I am not sure if I am paid should a client company decide to cancel the contract half-way through...

    Has anyone here had a case when you were able to renegotiate these rules?


    It's not "rules" it's the terms of the contract.


    As a business, it's quite normal for you to be out of pocket for the first month, because you invoice at the end of the month and that gets paid at the end of the following one.


    In your last job, when you were paid at the end of the month, did you ever complain that you were out of pocket for 30 days?
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  10. #10

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    Quote Originally Posted by SimonMac View Post
    Agency doesn't care if it's your first contract, in fact if they small fresh blood they will probably use that as an excuse to squeeze you more
    If they smell cashflow may impact services to client, they often do.

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