RE: Payment Delay in 1099 Employment Contract

Subject: RE: Payment Delay in 1099 Employment Contract
From: "Combs, Richard" <richard -dot- combs -at- Polycom -dot- com>
To: Monique Semp <monique -dot- semp -at- earthlink -dot- net>, TECHWR-L <techwr-l -at- lists -dot- techwr-l -dot- com>
Date: Tue, 19 Apr 2011 14:18:26 -0700

Monique Semp wrote:

> I'm incorporated, so my contracts are corp-to-corp, and certainly no
> company
> has ever agreed to anything quicker than twice monthly billing, Net-30.
> And
> I've had to wheedle and whine at times to even get Net-45 with once-a-month
> billing.
>
> So this does shine a more favorable light on agencies who agree to "front"
> the money to provide 6-day payment terms to 1099 independent writers.
> Those
> agencies are not only taking on the risk as to whether they will eventually
> see the money (I'm sure that their vendor terms aren't appreciably better
> than Net-30), but clearly have to have on hand sufficient cash reserves to
> pay 1099 workers or be willing to take out expensive short-term loans to do
> so.

Exactly. Some years ago, when my corporation (since shut down) represented several 1099 contractors, waiting 30+ days for invoices to be paid was fairly common. But I paid the contractors a week after invoicing their time.

It took some hefty cash reserves to do that initially. After a while, of course, money from older invoices started coming in and replenished those reserves. But fluctuations always existed, so sometimes there'd be extra coming in and other times extra going out.

My cut of the contractors' billed rate was 10%, which seemed a pretty modest profit for the paperwork, hassle, and risk. :-)


Richard G. Combs
Senior Technical Writer
Polycom, Inc.
richardDOTcombs AT polycomDOTcom
303-223-5111
------
rgcombs AT gmailDOTcom
303-903-6372
------






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References:
Re: Payment Delay in 1099 Employment Contract: From: Keith Hood
Re: Payment Delay in 1099 Employment Contract: From: Monique Semp

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