Tradesman

EssexExile

I've paid 100% up front and I've paid nothing until it's finished, and everything in between. Someone has to trust someone or nothing would ever get done.
From your opening post it sounds like you don't trust your tradesman, in that case I'd move on to another one.

comeandgo

Section62 said:

comeandgo said:

I have never paid a deposit and never will.  A decent tradesman will have accounts with suppliers,, if they don’t then that shows they are high risk financially.  Non of the tradesmen I use even ask for deposits, they do the work and get paid immediately they invoice.  

You've never purchased a car?

Loads, never paid a deposit, just bought outright but you have reminded me we did pay a deposit when we used tui for a holiday once and for our house.

comeandgo

Doozergirl said:

comeandgo said:

I have never paid a deposit and never will.  A decent tradesman will have accounts with suppliers,, if they don’t then that shows they are high risk financially.  Non of the tradesmen I use even ask for deposits, they do the work and get paid immediately they invoice.  

Here's a question. 

How does a tradesperson know what kind of financial risk you pose?  If you don't pay them, who pays their supplier? If you cancel at the last minute, who pays them for the lost work? 

I'm not advocating for any particular route, but that credit line you're taking for granted is very much extended to you.  You might be good for it, and the tradesperson might be good for it, and you can take out insurance backed guarantees if you like, but how does a tradesperson protect themselves? 

Trust is a two way process.  

Any plc will be asking you for 100% upfront - they know that customers aren't trustworthy! 

Surely part of being a business is financial risk, it’s one of the categories HMRC use to differentiate between whether a sub contractor is self employed or employee.  I agree a business must try and minimise the risk and they can do this by buying into the credit scoring companies like Experian, check if the customer has any negatives or using gut feeling.  I think that’s why so many people can not get any estimates for jobs, the contractor does not want the job.  

Doozergirl

comeandgo said:

Doozergirl said:

comeandgo said:

I have never paid a deposit and never will.  A decent tradesman will have accounts with suppliers,, if they don’t then that shows they are high risk financially.  Non of the tradesmen I use even ask for deposits, they do the work and get paid immediately they invoice.  

Here's a question. 

How does a tradesperson know what kind of financial risk you pose?  If you don't pay them, who pays their supplier? If you cancel at the last minute, who pays them for the lost work? 

I'm not advocating for any particular route, but that credit line you're taking for granted is very much extended to you.  You might be good for it, and the tradesperson might be good for it, and you can take out insurance backed guarantees if you like, but how does a tradesperson protect themselves? 

Trust is a two way process.  

Any plc will be asking you for 100% upfront - they know that customers aren't trustworthy! 

Surely part of being a business is financial risk, it’s one of the categories HMRC use to differentiate between whether a sub contractor is self employed or employee.  I agree a business must try and minimise the risk and they can do this by buying into the credit scoring companies like Experian, check if the customer has any negatives or using gut feeling.  I think that’s why so many people can not get any estimates for jobs, the contractor does not want the job.  

Yes, risk.   And you have to choose how to manage it because accepting it sends you under.  

I don't know many small building companies, let alone single trades, use credit scoring software.  That stuff isn't free.  

So if your way of managing risk is via gut (which you are correct is how most trades manage it) or deposits, or a mixture of the two, then that is also okay. 

It is far easier for a consumer to do due diligence than vice-versa.  I think deposits are more of an issue for people when they haven't really done their own due diligence and are managing their own risk by putting as little skin in the game as possible.