Credit checking potential customers ?

Mistral001

bingo_bango wrote: »

If you suspect that a lot of them will have poor credit do you really need to bother credit checking?
It might just be easier to factor a % of non payments into your overall pricing structure. Does away with the need for ICO compliance, nobody gets turned down for credit and you can start the job as soon as you're ready as well. It would likely keep your Mrs happier as well if she doesn't have to keep on top of all that

This seems a good idea in theory, but if you are self-employed and personally doing every job yourself, it is difficult to be a cool business person as well and accept that you win some lose some in the same way as someone who manages other people who do the practical work. If there is a doubt in your mind that you might not get paid for the job you are presently doing, it could affect the quality of your work and if the quality of your work suffers then the amount of work you get will quickly disappear. I am not saying it is impossible to be a businessman and a craftsman but it is a rocky road.

Mr_Poves

bingo_bango wrote: »

If you suspect that a lot of them will have poor credit do you really need to bother credit checking?
It might just be easier to factor a % of non payments into your overall pricing structure. Does away with the need for ICO compliance, nobody gets turned down for credit and you can start the job as soon as you're ready as well. It would likely keep your Mrs happier as well if she doesn't have to keep on top of all that

It was a back up plan for the pricier jobs in honesty , and yes she will be learning on the job so to speak .

Mr_Poves

Mistral001 wrote: »

This seems a good idea in theory, but if you are self-employed and personally doing every job yourself, it is difficult to be a cool business person as well and accept that you win some lose some in the same way as someone who manages other people who do the practical work. If there is a doubt in your mind that you might not get paid for the job you are presently doing, it could affect the quality of your work and if the quality of your work suffers then the amount of work you get will quickly disappear. I am not saying it is impossible to be a businessman and a craftsman but it is a rocky road.

Point taken - however I've worked far too long as a contractor just getting paid labour rates , It's only in the last few year's I've gone solo and supplied aswell so I have the mindset already .
I know there will be up's and downs , but I'm losing out on far too much business not doing some form of payment plan .
I know I will have to write some jobs off , but the ones who play ball means money in the bank....
Only time will tell , I should have a ratio worked out soon enough and will report back on how things are going .
Thanks for the input guys , it's appreciated .

paddyrg

How about a broker like ideal4finance ? Effectively you generate leads for them to approach lenders, so it's an unsecured loan, not finance against the goods or services. Can't imagine the interest rates are terribly attractive, but at least you're offering some kind of option for those who need it.

Mr_Poves

paddyrg wrote: »

How about a broker like ideal4finance ? Effectively you generate leads for them to approach lenders, so it's an unsecured loan, not finance against the goods or services. Can't imagine the interest rates are terribly attractive, but at least you're offering some kind of option for those who need it.

Paddy - I have been trying to remember the name of that company for 2 weeks ! Thanks again :beer:

Mr_Poves

And I've just found a thread about them on this forum , and it's mixed reviews - I'm not interested in parting with my hard earned cash whilst making someone else money , It's £750 upfront fee , back to the drawing board ....

paddyrg

Ah no worries. Maybe try calling them though, sounds like they need you and your introductions more than the other way around, they may waive the £750, or compromise? I know I would in their shoes!

Slinky

How much money can you really make on a £250 flooring job where the customer struggles to afford it? Would it not be a better plan to target bigger/better jobs for people who can afford to pay a decent amount up front?

Mr_Poves

Slinky wrote: »

How much money can you really make on a £250 flooring job where the customer struggles to afford it? Would it not be a better plan to target bigger/better jobs for people who can afford to pay a decent amount up front?

You'd be surprised how much mark up is in a smaller job , I'd rather do 10 small jobs a week than 3 or 4 big ones .
The way it works in this game , the more people spend , the more they shop around , so the bigger jobs are always harder to win , and then obviously you need to start price matching etc .