bridging a payment/ factoring etc

[Giles]

pricing a job £150k ish which we'd be on 28 days for but £70k of surfacing in there who'll want it in 7 days etc

there are invoice factoring companies etc and can do a part claim on po once on site etc but like 2 weeks of prep then surfacing is the job

doubt I can get them to pay direct just by the way payment system is setup by usa corporate overlords

any way rd this rather than turning job down or having to lend the company money from personal accounts etc or is that the best way are there any tax implications for short term loan to company then back to me? will ask my accountants as well.

 

[Monkeybusiness]

I’ve never liked the idea of factoring as it is dead money BUT at the end of the day the bank etc who finance the job have a lot more clout when it comes to dragging money out of the customer if they turn out to be slow/bad payers.
Can you not have the discussion with your surfacing contractor about negotiating better payment terms?

 

[V8Druid]

as said ... factoring costs .. and is not as safe as it is always made out to be ... you will always be liable for the debt, if not paid ... looked at it a few times over the years and concluded it was far from a panacea for the issues of carrying high overheads ..... I would also not recommend sinking personal funding into it

got a great story about a supplier who factored his a/c.s and tried to pull a fast one on them, using me as 'a target' / stooge (but omitted to consider discussing it with me first !! ) ......
dropped him in the tish, from such a height, he never resurfaced for air - tw*t

 

[Lancs Lad]

pricing a job £150k ish which we'd be on 28 days for but £70k of surfacing in there who'll want it in 7 days etc

there are invoice factoring companies etc and can do a part claim on po once on site etc but like 2 weeks of prep then surfacing is the job

doubt I can get them to pay direct just by the way payment system is setup by usa corporate overlords

any way rd this rather than turning job down or having to lend the company money from personal accounts etc or is that the best way are there any tax implications for short term loan to company then back to me? will ask my accountants as well.

Sounding condescending I know but please check factoring T&C's carefully... Some are seriously scary if things go wrong .our bank were shoving it at us at one time my finance guy strongly suggested avoiding it.

Can you have a chat with their finance team? Be up front about the issue offering a minuscule discount if they pay up front or a chunk?

Ltd? Can obviously dump some into loan account and then charge co interest if you've got the wonga and the appetite ?

 

[William127]

Can you have a chat with their finance team? Be up front about the issue offering a minuscule discount if they pay up front or a chunk?

guy I put acoustic enclosures in for was being hasseled by a client -some kind of scientific research/manufacturing company, fairly big place, not short of a few quid- for a discount on a quote about 12 man days work, few grands worth of materials and transport.
As a go away response he offered them 1% for immediate payment on invoice! They accepted, job done, paid by return, everyone happy

 

[DaveDCB]

If you have to do it that way and you have the cash, just do a directors loan, if you want to keep it simple just loan it FOC, or add in a percentage say %12(which is about the going rate for a bridging loan) just pay it back when your customer settles the invoice.

 

[V8Druid]

If you have to do it that way and you have the cash, just do a directors loan, if you want to keep it simple just loan it FOC, or add in a percentage say %12(which is about the going rate for a bridging loan) just pay it back when your customer settles the invoice.

's alright as long as it's a watertight guarantee of payment -- ON TIME

 

[DaveDCB]

's alright as long as it's a watertight guarantee of payment -- ON TIME

Well true, you’re probably venturing into legal contract territory with that kind of outlay/invoice amount.

 

[Giles]

Will have full po and they’ve never not paid before done over £1m of work for them over the years. Huge multinational company investing in factory so doubt they’re on the brink etc. Quick look says worth £1.66bn currently

Will check with surfacing see what they’re on with their material suppliers and if for a bit more theyll do 30 days.

Factoring is out the window reading up about it

 

[6feetdown]

Will have full po and they’ve never not paid before done over £1m of work for them over the years. Huge multinational company investing in factory so doubt they’re on the brink etc. Quick look says worth £1.66bn currently

Will check with surfacing see what they’re on with their material suppliers and if for a bit more theyll do 30 days.

Factoring is out the window reading up about it

Ask them if you can have an interim pay 14 days in, just be straight and tell them you can't afford to carry that amount

 

[Giles]

Ask them if you can have an interim pay 14 days in, just be straight and tell them you can't afford to carry that amount

They’re like it’s not us it’s corporate in USA who control payments, they have tried 90 days before I was like nope. And they requested a 2% refund of all their suppliers one year someone obviously had visit from good idea fairy everyone obviously then put prices up 10% next year lol

Might say that my price but it’s on 7 days or you get big boys in for double money, I know on another job for trust some big boys were 80k more than me. They had £30k in prelims for a basic job with no design and cdm accounted for. Basically put profit in prelims it seemed.

 

[DaveDCB]

Big company in Derby been around a while, they used to charge 40k just for the site compound setup, had some lovely freebies when stripping the compounds down for them

 

[Giles]

Big company in Derby been around a while, they used to charge 40k just for the site compound setup, had some lovely freebies when stripping the compounds down for them

Site setup was £7k for 6 herras and welfare cabin in carpark lol

 

[6feetdown]

They’re like it’s not us it’s corporate in USA who control payments, they have tried 90 days before I was like nope. And they requested a 2% refund of all their suppliers one year someone obviously had visit from good idea fairy everyone obviously then put prices up 10% next year lol

Might say that my price but it’s on 7 days or you get big boys in for double money, I know on another job for trust some big boys were 80k more than me. They had £30k in prelims for a basic job with no design and cdm accounted for. Basically put profit in prelims it seemed.

I know someone who just finished a job for big usa outfit thrashed it out and 2 week payments I think he had.
If they want it done they can do it

 

[V8Druid]

I used to d a LOT of work for an American based company and always paid on the nail/as agreed ... they couldn't understand the 90 day culture here in the UK ... usually paid on receipt, certainly within two weeks ... and never quibbled as long as the invoice was as per quote/spec./extras detailed clearly ... could've done with more like them in the area/country