This week a Fund My Contractor agency contacted us to request a client credit check.
As the client was a fairly new business they were only given a limit of £10,000. As the optimum limit required was around £30,000 to cover placements for a 3 month billing this low limit would only cover one month’s worth of invoicing.
We advised that it was worth speaking to the client to discuss options. Either they could reduce the payment terms from 30 days down to 14 days, reduce the notice period to 14 days, or increase the candidate payment terms up to 14 days to reduce the amount of time the credit limit would be required.
After speaking with the client it was agreed that the payment terms should be reduced down to 14 days. Not only did this allow the placement to go ahead, but with regular payments over a 6 month period there was a higher chance to increase the credit limit for future projects.
If you would like more information about how Fund My Contractor can assist you please contact our offices on: 0845 8811 112.
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