Paying tradesman by bank transfer

trient

Not sure if this is the right board, but here it goes... I've received a quotation from a tradesman (gardening works) and their payment terms are bank transfer only, 50% 1 week before works commence, 25% in the first week, 25% upon completion (works duration estimated at 2-3 weeks, total value about £7k).

In light of previous posts here about bank transfers sometimes leading to account closure freeze I'm very uneasy about paying such a large amount (over £3k) in advance, to a person I've only met a couple of times.  It's a nice person, they have a branded truck, but the business doesn't show up on Companies House (I assume sole trader) and they only have a few reviews and little to no information I could find otherwise.  Feels a bit risky since I can't reverse a bank transfer over a credit card payment.

Am I overreacting or are these terms normal for this kind of works?

Thanks in advance!

GenieBoy

10% deposit before work starts and rest on completion. Bank transfer is fine.

CliveOfIndia

It's a tricky one.

As regards the bank transfer triggering account closure, it's something I've seen on this forum a few times, though I've never come across it personally - and I've done quite a few large transfers over the years, paying tradesmen exactly as you describe.

As to the tradesman himself, that's a bit more difficult to gauge.  Firstly, anyone can appear to be "nice", and anyone can get a signwriter to livery up their van.

It's not unusual for a small one-man-band to not have the facilities to accept credit cards.  Paying 50% up front is a bit of a gamble.  On the one hand, any decent tradesman will have credit facilities at his supplier, so shouldn't need you to fund the purchase of materials.  But conversely, look at it from his point of view.  What if he spends a few thousand buying materials for your job, then you cancel at the last minute?  Sure, he may be able to return the materials, but maybe not - and he may face a fee for doing so even if he can return them.

A few things you can check.  Has he done any work for anyone else in the local area?  Can you speak to anyone he's done work for?  That'll give you a better idea than some random reviews online.

Do you know his address - either his home address or a business premises?

In the absence of anything else, if you can at least find out a bit about his reputation locally, that's a start.

Not sure if this is actually of any help to you (!), but just my thoughts.

eskbanker

The only posts I've seen about bank transfers and account closures relate to inward transfers, i.e. those where a another party has paid into your account and then claims that there was some fraud involved, thereby triggering checks by the recipient's bank.  Has anyone claimed account closure after making payments by bank transfer?

comeandgo

Only Ltd companies are registered at Companies House so probably sole trader.  Absolutely no way would I part with 50% before he had even started.  A good solid business has accounts with suppliers and pay them monthly after receipt of goods.

summer_daze009

You said that you could find little information about this tradesman, so how did you hear about him in the first place? Through a number on his van, by recommendation or does he have a website. Did you get other quotes and if so what were their terms of payment? 

It’s not that unusual for a sole tradesman to ask for money upfront especially if they have expensive materials to buy, but on the other hand well established companies should have 30 day credit accounts with their suppliers so that they wouldn’t need to ask for money upfront.

You’ve already said that you are uneasy with the payment terms (I would be too) so deep down I think you know what you should do. If it was me I would be looking for alternative gardeners

As far as paying with a bank transfer, that shouldn’t be a problem at all although if you do decide to go ahead I would make sure it is a business account. Paying in to a personal account would raise another red flag for me

xylophone

Have you seen examples of this tradesman's work?

Strombidae

My local Council runs a 'Good Trader Scheme' and the very best are awarded a Certificate of Excellence. Might be worth checking to see if your own Council runs something similar? Not foolproof, but might offer a little peace of mind.

No way would I pay a trader 50% upfront by bank transfer.

Neil49

If the 50% up front is to purchase items for the gardening project, such as slabbing etc then you would be better off offering to purchase it directly from the supplier yourself. If the trader does a runner you at least have the goods. 

Zanderman

trient said:

Not sure if this is the right board, but here it goes... I've received a quotation from a tradesman (gardening works) and their payment terms are bank transfer only, 50% 1 week before works commence, 25% in the first week, 25% upon completion (works duration estimated at 2-3 weeks, total value about £7k).

In light of a previous post here about bank transfers sometimes leading to account closure I'm very uneasy about paying such a large amount (over £3k) in advance, to a person I've only seen a couple of times.  It's a nice person, they have a branded truck, but the business doesn't show up on Companies House (I assume trading under own name) and they only have a few reviews and little to no information I could find otherwise.  Feels a bit risky since I can't reverse a bank transfer over a credit card payment.

Am I overreacting or are these terms normal for this kind of works?

Thanks in advance!

Paying 50% in advance is clearly high risk. Especially such a large amount. I wouldn't do it.

As for using bank transfers, the problems people report following those are incoming transfers not outgoing.  The only issue in paying this way is being sure it's the right account!

diystarter7

Hi

Bank transfers done many times, BUT and a big BUT, I never pay a penny up front but as you are aware, it syour choice.


Over 20 years ago, nearest paying up front was paying for the materials once they were on site. A few years ago, I paid for the roofing materials via CC to builders that have been established for over 40 years and builders' roofer said he uses and I have used

Even paying 10% upfront, not for me but I bet many will say its ok but sorry, I can't

So bank tranfers before works start, a no from me. Once completed, yes but never before.

Good luck