Deposits & Installments

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Jgreenplastering

Jgreenplastering

Private Member
I've started requesting deposits for jobs over a few K now and then Installments with last one on completion.
Not had any customers complain yet but why is there such a stigma within the trade that clients think they shouldn't pay deposits etc and only on completion?

People are happy to pay it for holidays, cars, electronics etc or even pay up front before they receive goods so I don't see it as anything different. Your getting a service and a product.

I think it's to do with they feel secure in buying goods from who they deem 'reputable' but I don't see why we should front a few k in materials and wages in the hope of being paid at the end.

Luckily I've only been bumped once when I started on my own but that almost sent me under! That was a family friend aswell!
I've learnt from my mistakes but I can only imagine what it must be like for the big site guys.

The legal route is long winded and just not worth the hassle sometimes, I know there's the knuckles option but to have to do that to get your money is risking a lot especially when people will run to the police.




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I do it bud and not many have got a problem with paying 25% up front and the rest on completion or if the job may take a few weeks paying another 2 lots of 25% and the remainder on completion, you may find the ones who have a problem with the giving a deposit will be the ones who try and squeeze as much as possible out of you and moan at any opportunity and be the slowest payers


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It sounds like a faff to be honest and not necessary, it's not home owners that do the bumping, generally.

If you have cash flow problems you could look at getting decent account terms agreed with your suppliers, but you also need to have a substantial float in your account if your taking on multiple jobs of higher value.
 
Wezly said:
It sounds like a faff to be honest and not necessary, it's not home owners that do the bumping, generally.

If you have cash flow problems you could look at getting decent account terms agreed with your suppliers, but you also need to have a substantial float in your account if your taking on multiple jobs of higher value.
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I just prefer to pay as I go most of the time. I do have credit accounts and a float but nothing massive.
 
We're cash on completion. Never been bumped and I find it gives the client peace of mind, there are that many cowboys about who take payments and either f**k a job up or don't turn up to finish, so we have them to thank that cash on completion is expected these days.
 
I always ask for installmenta for anything over a grand, and if I had to stump huge amounts in materials I would ask for deposit.

If someone has a problem then I'd rather not work for them as they may be trouble.

As above, I have enough wedge in bank to float but only a few grand, not enough to not be paid for a few weeks! Makes me wonder how much some of you guys have sat in the bank if you think its hassle asking for installments?? Equally I don't use credit accounts, pointless in my view, bit more stress free paying upfront knowing if I don't get paid atleast I don't have merchants chasing me too!!
 
anything over 5-10k plus vat i will ask for 20% then payment 7-14 days after completion. havent had anyone refuse this yet. and if they did i wouldnt be doing the job.

all.our materials are on accounts as we run 3-5 jobs at a time
 
In my experience most window fitting outfits do it i.e Their first day on job you have to pay for materials by bacs, cash or bankers draft and then balance on completion. I have never had a problem with asking for a set amount at end of first week of work and then graduated payments until completion on longer projects and can't say i've ever had a complaint about asking for payments in this way. Like most things it's a case of what you think is right for you i suppose.
 
I only ask to settle materials on first day when goods arrive if the job is over 10k, it can be cash or bacs. Occasionally I do charge for quotes when the client is a ballache, which will be knocked off the final bill if quote accepted. I haven't asked for deposit as such on any of my jobs, I don't think it looks good. I haven't got any credit accounts either, much better more managing cash flow myself than getting stung by the merchant and argue about prices.also avoiding running multiple big jobs, just not worth it in my opinion, too much running around.

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I always tell the customer I need the money for materials when they arrive on site.
just to keep my overheads down but if it's just a small job I just complete and invoice and payment within 14 days.
Only ever been stung once for £2500 but still hurts!!!!!
 
If materials costs are over a few hundred then I always place an order and get client to pay directly, thus keeping it off my books, then labour on completion
 
OK... Heres how I see it...no deposit...however price on satisfactory completion every time....

If 1 week passes without explanation or agreement on a big render jobs etc the most horrible bastards in south Yorkshire will be knocking on there doors.

I treat everyone with respect until they cross me then I genunley don't care I would rather do time than mugged off!
 
getting a deposit for materials is the only way round when you dont want to say outloud can you pay me for this job if they dont pay a deposit alarm bells start ringing and you end up doing job thinking if you dont pay me for this what am i going to do apart from want to knock them out or the house down ha ha but i always get a vibe when you meet a client you have a good rapore and if you can work the job out you can work them out its a bit like plasterers cluedo
 
Davy sneddo said:
getting a deposit for materials is the only way round when you dont want to say outloud can you pay me for this job if they dont pay a deposit alarm bells start ringing and you end up doing job thinking if you dont pay me for this what am i going to do apart from want to knock them out or the house down ha ha but i always get a vibe when you meet a client you have a good rapore and if you can work the job out you can work them out its a bit like plasterers cluedo
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I did a job last summer and was owed the thick end of £18,000.
I invoiced them and heard nothing for a month,so popped in one day whilst i was passing.When i asked the client what they were doing about payment,they said: We dont know wheter to get a bank loan or remorgage for it! so in other words,they didnt have the money.
I instantly wanted to lay him out on the spot,but held my temper,had a few strong words with them.Baring in mind i had priced the job 8 months earlier,so they had all the time in the world to sort money out or simply say no.I now ALWAYS put payment terms on my estimates,no matter who it is,and i would advise everyone to do the same
 
As mucky says, in my experience at least, clients who have a problem with instalments on larger projects are generally the ones who will give you problems in the end.
I request part payment or instalments on some jobs where I don't know the client, even though I don't necessarily need the money, it's a way of sounding them out and seeing how the land lies


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ozzy said:
I did a job last summer and was owed the thick end of £18,000.
I invoiced them and heard nothing for a month,so popped in one day whilst i was passing.When i asked the client what they were doing about payment,they said: We dont know wheter to get a bank loan or remorgage for it! so in other words,they didnt have the money.
I instantly wanted to lay him out on the spot,but held my temper,had a few strong words with them.Baring in mind i had priced the job 8 months earlier,so they had all the time in the world to sort money out or simply say no.I now ALWAYS put payment terms on my estimates,no matter who it is,and i would advise everyone to do the same
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did you get paid?
 
I never took deposits... got bitten a couple of times but not for massive amounts and I believe in what goes around comes around :D
 
Danny said:
I never took deposits... got bitten a couple of times but not for massive amounts and I believe in what goes around comes around :D
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Yes,I did get paid Danny,so I knew I'd done the right thing by not blowing a gasket.Mind you,if it were only a few hundred the outcome may well have been different. I did wonder afterwards if they had a plan not to pay me?You never know how some peoples minds work,any big jobs now I ask for installments,as set out on my estimates.
 
ozzy said:
Yes,I did get paid Danny,so I knew I'd done the right thing by not blowing a gasket.Mind you,if it were only a few hundred the outcome may well have been different. I did wonder afterwards if they had a plan not to pay me?You never know how some peoples minds work,any big jobs now I ask for installments,as set out on my estimates.
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glad you got paid
 
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