Slow Payers – Agency were slow, then they went belly up

Slow Payers
Slow Payers

Slow Payers

A contractor sent us this about an agency who were slow payers.

I worked for an IT Agency many years ago, which stalled on payment.

The job was initially a four-month IT contract with a three weeks extension.

The first two-month’s payments came in on time. Then September was one week late, October two weeks late.

I did the extra work in the first three weeks in November, working the weekend and the Monday as overtime beyond the IT contract end date for a promised bonus, then I invoiced.

Kept the Overtime

December came and went so did January. I banked the cheque in February, but the
Client had paid the IT Agency within two weeks, for all the work, including the overtime, which they refused to pay me, as I was out of contract!

I had introduced a friend.

He ran a computer-training course for the Agency in the Middle East during October, and his costs included flights, accommodation and training material. The first cheque bounced in January, as the Agency’s Bank, put a stop on all payments over a set value, he got his money over a period of 4 months!

By the following October the IT Agency had ceased trading.

P.S. the Directors all drove new flash cars, and they closed for two weeks over
Christmas and New Year, leaving me with no option but to take out an overdraft with the bank!

Sign Weekly Paid Contracts

I now only sign contracts to get paid on a weekly or fortnightly basis!

At least you know sooner, if something is going wrong.

We should all do the same, and stuff their cash flow!

The lessons is that if agencies are slowpayers you must take action straight away.

Those who acte first are the ones most likely to be paid.