02 February 2018 ~ 0 Comments

Avoid this trap at all costs aka “Never Net 30” !

I’ve been a contractor for a while. And when you’ve been doing this as long as I have you tend to develop some hard and fast rules for yourself. You don’t compromise on your rate. You don’t compromise on your location preference.  Work to learn, don’t work to earn.  And as many times as I’ve cautioned my friends about payment terms — the moment you break you own rules is the moment you get burned. So, please heed this advice: if a contracting agency aka “pimp” calls asking you to accept net 30 terms with once monthly billing, hang up the phone.  I’ve seen this happening a bit more often in recent months.

I’ve had a couple of shops call asking about this, and – I admit, last year against my best judgement, I accepted one.

It. Did. Not. Turn. Out. Well.

Now I’m calling this the “Net 30 trap” or “Never Net 30” — and let me tell you: In my 20 years working as an IT contractor I have never really had to accept Net 30 terms. Agents all ways do better. So right off the bat, unless this is a company you trust and somebody you know and have worked with before, there really isn’t any reason to accept net 30 terms. They may claim this is the public sector, and they may claim any sort of nonsense.  DO NOT ACCEPT THESE TERMS!  More common these days are Net 15 or even Net 7 terms. I want to be paid, at a minimum, every 2 weeks. And there is more than one reason to never accept Net 30. In this article I’ll start by introducing the trap, and in coming days I’ll elaborate on the other ways I’m seeing pimps scam their people.  Obviously this is unethical, bad behavior — these people are in the people business and, if you want to remain in the people business you need to treat people fairly. I digress.

Here’s what happens. You work for 30 days. Then you send your bill.  Now you wait for 30 more days (that’s .. yes, 60 days) and here’s what you’ve done. You’ve extended your full faith and credit to this agency who is using you ask their bank. They are your employer, not your bank.

Now the very special and tricky part. What if this agency now decides they don’t want to pay you?  They’ll make up a reason, and they’ll try to blame your work product.

Impossible, you say? Not so. It can happen.

I ask again — what happens if you work for 60 days without being paid? As rare as this is – there are some firms out there now trapping contractors like this. It is unethical. I will not work with agencies like this – and it’s very easy to avoid.

Simply never, ever accept an offer when the agency is asking for “NET 30 billed monthly terms.”

And, please share in the comments if you, like me, have been burned my unscrupulous providers using you as their bank.

The real problem here folks is when you work for 60 days without pay — your greedy pimp will ask themselves “why not 90 days?” And that, my friends is simply not acceptable.

Stick to NET15 with twice monthly billing. If your contracting agency or recruiter can’t accept this — move on. There are better jobs out there for you.

I hope this helps.

 

Truly, Jim

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