Payment terms 30 days

[Bumfluff]

I've been luckly invoice on a Tuesday money in by Friday. Just been offered a gig though nice rate, agent seems small, but its 30 day payment terms so I would invoice for July end of the month but wouldnt get paid till end of August.

As I havent been monthly for as long as I can remeber is the 30 day thing the norm ? If not what is reasonable to try and ask them for ? They did indicate there was some flexibility but they also did state there payments terms with the end client was 30 days is that usual as well ?

Cheers

[TraceRacing]

Can you not invoice weekly? Then the money starts coming in sooner...

[eek]

Can you not invoice weekly? Then the money starts coming in sooner...

Is the agent paying you before they receive the money?

By the sounds of it they are not factoring the money but merely paying you once they've received the money.

[SueEllen]

Can you not invoice weekly? Then the money starts coming in sooner...

WHS

Ask to invoice weekly if they insist on 30 day terms. That way if the agency screws you over you can walk quicker.

[inferno]

Is the agent paying you before they receive the money?

By the sounds of it they are not factoring the money but merely paying you once they've received the money.

If this is the case, then be prepared. I have known contractors not to receive money for 3 months with this set up.

[SorenLorensen]

30 days is taking the p*ss from an agency. I'd try to negotiate.

[northernladuk]

Generally I would agree that 30 days is too long and negotiate to anything lower, 14, 7 days, whatever.

Oddly enough however I have been on 30 days for over a year now and have had one late payment and thats it. Still means I have over a month's risk hanging over me which will only surface when there is a problem though. Not overly happy about it but it's working. You won't instantly get screwed over the minute you sign up to it.

I am, however, happy the people paying me are are not going to go under at anytime in the foreseeable future.

[craig1]

When an agency messes around with long payment terms, I usually ask them to significantly increase the daily rate to compensate for them having the use of my money for that longer period. Every agency so far has buckled at that point and given either 7 day or nominated weekly day terms*.

I'd especially hold out for short payment terms with a new agency you have no working relationship with. It's a long wait on monthly billing with 30 day terms to find out whether the agency will bother paying that first invoice.

* i.e. get invoice in by Monday to get paid on Friday or wait until next week.

[JamJarST]

I am on weekly invoicing with 30 day payment terms. They pay me on time (in fact always a few days early) I have looked at my agents vendor account and they are on 45 days terms with ClientCo. ClientCo appears to be late paying and their are 2 invoices outstanding which I have been paid on time.

[Wanderer]

I am on weekly invoicing with 30 day payment terms. They pay me on time (in fact always a few days early) I have looked at my agents vendor account and they are on 45 days terms with ClientCo. ClientCo appears to be late paying and their are 2 invoices outstanding which I have been paid on time.

And how much margin are they taking? Seriously, it's tulip like this that that agents are paid handsomely to deal with.