Contract payment terms

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peterroberts

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Been offered work for a few months, but not sure about payment terms, they want me to invoice them end of every week, i then get paid four weeks after that, so would basically be doing five weeks before being paid anything, never come across this before and not sure i trust them to pay, any one else had this before and did it work out?
I know it would turn into weekly pay after the five weeks is up but im just not sure, as I say that i trust them
 
I've been on sites where they have done the same but not 4 weeks!
Invoice end of 1st week get paid week after etc... 4 weeks is a lot.
 
Not uncommon up here.
I've been on 30 day and 60 day payment contacts before.
Really depends on how much you trust the company. If they go bust or don't pay up your in a pickle.
I don't like doing it personally.
Are you supplying the materials aswell?
 
Yes supply mats aswell, thats whats holding me back, done the whole thing with invoice at end of week pay the week after but never 4 weeks, its a new company thats why im dubious as to the terms
 
A would not risk it then peter ? R they that new they cant get a materials account them selfs ? Get back to them and have labour only in them terms ...... If it went tits up and u have a month and a bits gear all for u to pay plus no wage in over that time as u havnt got ur money it sounds expensive . Depends how trusting they seem .......
 
Going seeing them again later, see if i can rework the deal, if not thinking i will give it a miss, glad its not just me that thought it was a bit off, thought i would see if it had become normal practice, but obviously not
 
They will try find a reason not to pay , they might just not pay. Why else such long terms ? If they havnt got the money to pay you sooner no chance !
 
Don't do it your asking for trouble ,believe me and believe everyone else on here,if in doubt say no Peter,if you live by that saying you won't go far wrong in life,,I'm just an old head on old shoulders:RpS_unsure:
 
too risky if you ask me , bit easy to get wiped out, suppose it comes down to trust and that would be me out because I don't trust anyone, months wages and materials cost nah im sweating thinking about it:RpS_scared:
 
wise move peter,, ive never heard of this before,, with a new company like this even 2 weeks would make me nervous
 
leebo02 said:
wise move peter,, ive never heard of this before,, with a new company like this even 2 weeks would make me nervous
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We've had to wait 3 weeks after invoice before wouldn't do it again though, it was on labour only as well we were 'lucky' they paid on time.

If it's contract work as in labour and mats then 30-60-90 is the norm for proper site work but personally couldn't stomach it, constantly chasing payment especially the last one!
 
peterroberts said:
Been offered work for a few months, but not sure about payment terms, they want me to invoice them end of every week, i then get paid four weeks after that, so would basically be doing five weeks before being paid anything, never come across this before and not sure i trust them to pay, any one else had this before and did it work out?
I know it would turn into weekly pay after the five weeks is up but im just not sure, as I say that i trust them
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Are you VAT registered Peter?
 
SpankySouthport said:
We've had to wait 3 weeks after invoice before wouldn't do it again though, it was on labour only as well we were 'lucky' they paid on time.

If it's contract work as in labour and mats then 30-60-90 is the norm for proper site work but personally couldn't stomach it, constantly chasing payment especially the last one!
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the bloke i do a lot of work for has to wait 90 days but that is from big well know company's so his money is pretty safe, plus hes a millionaire so that obviously makes it easier for him,, is marshy behaving himself lol
 
a month isn't to bad to be honest id take that, 60 days is now my maximum, some outfits are 90 days plus retention, I don't entertain that, but 30 days is fairly good if its a profitable job. but its your time and money so you take your choice.
 
No not vat registered, was my dad's business before he died and always told me to steer clear of the vat man, made out like he was something you wouldn't want to bump into in a dark alley, his attitude was if you mess up the tax the give you time , mess up the vat they want it yesterday
 
peterroberts said:
No not vat registered, was my dad's business before he died and always told me to steer clear of the vat man, made out like he was something you wouldn't want to bump into in a dark alley, his attitude was if you mess up the tax the give you time , mess up the vat they want it yesterday
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Definitely doing the right thing by steering clear then, as they are [almost certainly] vat reg'd and could claim it back on the gear if they bought it themselves, but they can't claim it from your invoices. RUN!!!!!!!! :RpS_thumbup:
 
bubbles65 said:
Definitely doing the right thing by steering clear then, as they are [almost certainly] vat reg'd and could claim it back on the gear if they bought it themselves, but they can't claim it from your invoices. RUN!!!!!!!! :RpS_thumbup:
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It would make no difference to them whether he's VAT registered or not. As assuming it's new build work his invoices would show no VAT was charged either way.
These terms don't seem to harsh at all. Most firms would expect a plot to be completed before invoice and then 30 days minimum payment terms.
Not being either willing or able to accept terms like these is what stops many small outfits going to the next level.
 
essexandy said:
It would make no difference to them whether he's VAT registered or not. As assuming it's new build work his invoices would show no VAT was charged either way.
These terms don't seem to harsh at all. Most firms would expect a plot to be completed before invoice and then 30 days minimum payment terms.
Not being either willing or able to accept terms like these is what stops many small outfits going to the next level.
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New builds are zero rated VAT as far as the government is concerned, as a developer, you can still claim the VAT back on materials.
 
essexandy said:
It would make no difference to them whether he's VAT registered or not. As assuming it's new build work his invoices would show no VAT was charged either way.
These terms don't seem to harsh at all. Most firms would expect a plot to be completed before invoice and then 30 days minimum payment terms.
Not being either willing or able to accept terms like these is what stops many small outfits going to the next level.
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agree, most of my accountants with builders etc are 30 days from invoice. they wouldn't deal with me if I wanted draws every week, theres trust on both sides, domestic jobs get the same conditions. but I can understand why a one man band may struggle because of cash flow. ive always incorporated a decent working capital in my business to deal with it.
 
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