Payment terms for new Kitchen

devendragera

Hi,

We have decided on getting a new Kitchen. We are happy with the design from a local Guy (he runs a small company). However he is asking for 100% payment for the kitchen (furniture and appliances) against delivery (via a Bank draft) and fitting charge to be paid after installation of the kitchen. I am not very comfortable with 100% payment for the kitchen furniture and appliances.What if I am not satisfied with the fitting or any thing else goes wrong, in which case I have to sort the mess. Is it a done thing to pay 100% on delivery upfront? What should be the right payment terms in this case?

Thanks in advance

sheslookinhot

Remeber, if he runs a small company then he is in negative cash flow if he buys all your material. A deposit of some description is in order, even 50/50, no more.

But ensure the material he buys is "yours", i.e delivered to your house, in case the worst happens.

CKdesigner

Hi

The OH and I have our own independent kitchen specialist business and we require a 25% deposit to confirm the order as all the cabinetry is made to order, then 65% cleared funds prior to delivery and the final 10% after installation. This generally is fairly standard for the industry.

You said that you will be paying the installation part of the order after fitting so you still have money in hand until the job is completed.

Has the company issued you with 'Terms of Business' as this should give you more information and do they take credit cards, if so pay on a credit card for extra protection.

Good luck

CK

Meepster

Seems pretty fair to me, how else would you expect the company to fund buying the furniture and appliances? As CK said, you are not paying the installation charge until it is complete, so you do have some security there...