Payment terms Payment terms
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Thread: Payment terms

  1. #1

    Fingers like lightning

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    Default Payment terms

    Hi,

    Quick question about a term in a contract:

    Agency shall pay the suppliers invoice within the later of (i) thirty (30) calendar days of receipt of the invoice or (ii) 30 days of receipt of payment by the client to Agency.

    I'm happy with 30 calendar days but without knowing the payment terms of the agency and the client it's difficult to see why I would agree to that. So the question is, is this something that is common or should I ask for the second clause to be removed?

    Thanks

    VC

  2. #2

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    That second bit definitely has to come out for a host of reasons. I've never seen that in a contract before and is really unfair. The payment terms between them and the client is their problem and you are already suffering a pretty long delay. Many agents will factor the payments which IMO is part of the rate they are taking. What the hell else are they doing for 50 quid a day?

    What is your invoice timings. If it's 30 days they you are already shouldering a lot of risk.

    Problem is will they take it out though as it's a great benefit for them? Have you had your contract checked by a specialist who can negotiate this and any other IR35 terms out in your behalf. Might sound better coming from them than you.
    Last edited by northernladuk; 13th May 2019 at 19:51.
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  3. #3

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    Quote Originally Posted by northernladuk View Post
    That second bit definitely has to come out for a host of reasons. I've never seen that in a contract before and is really unfair. The payment terms between them and the client is their problem and you are already suffering a pretty long delay. Many agents will factor the payments which IMO is part of the rate they are taking. What the hell else are they doing for 50 quid a day?

    What is your invoice timings. If it's 30 days they you are already shouldering a lot of risk.

    Problem is will they take it out though as it's a great benefit for them? Have you had your contract checked by a specialist who can negotiate this and any other IR35 terms out in your behalf. Might sound better coming from them than you.
    I had someone try this many years ago. A bit of sleuthing showed that they had phoenixed an NZ company a few months previously and I politely declined.
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  4. #4

    Fingers like lightning

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    Quote Originally Posted by northernladuk View Post
    That second bit definitely has to come out for a host of reasons. I've never seen that in a contract before and is really unfair. The payment terms between them and the client is their problem and you are already suffering a pretty long delay. Many agents will factor the payments which IMO is part of the rate they are taking. What the hell else are they doing for 50 quid a day?

    What is your invoice timings. If it's 30 days they you are already shouldering a lot of risk.

    Problem is will they take it out though as it's a great benefit for them? Have you had your contract checked by a specialist who can negotiate this and any other IR35 terms out in your behalf. Might sound better coming from them than you.
    Qdos are doing it now, not sure they would pick this up as part of an IR35 review.

    Not had many contracts so not entirely sure what to look for but this seemed unreasonable.

    VC

  5. #5

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    Quote Originally Posted by VillageContractor View Post
    Qdos are doing it now, not sure they would pick this up as part of an IR35 review.

    Not had many contracts so not entirely sure what to look for but this seemed unreasonable.

    VC
    They might not but you can mention it to them and see what they say.
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