Paying a deposit for bathroom materials pre-installation

SDLT150

Hello! I'm having 2 x bathrooms done by a bona fide LTD company. Within the terms is a request for deposit - several thousand pounds - via a BACS payment. How safe is this if, for example, the company went bust before the installation date in 8 weeks time? Many thanks in advance for any input / guidance.

born_again

If they go bust kiss good by to the money.

Only way in that case would be a payment via card if they would take it.

Grumpy_chap

Can you / have you paid any part by credit card?

How established is the company? Basic information is available on Companies House website plus you can take up personal recommendations.

Are you paying the bathroom company or the supplier? Depending on the company, asking may cause offence or it may be common (e.g. if supplier is Howdens).

SDLT150

https://forums.moneysavingexpert.com/discussion/comment/81989864#Comment_81989864

Yes, that was my fear. Thank you.

SDLT150

https://forums.moneysavingexpert.com/discussion/comment/81989868#Comment_81989868

Payment is due tomorrow 8th. Company well established and Co House shows in 'good' form. Payment direct to the company. Think I'll email to confirm the options. Thanks for your reply.

Markdavid1962

I had two bathrooms installed and insisted on signed contracts with a payment plan, we purchased the main items first, so it was only the installation fees

grumpy_codger

• 8 weeks in advance?! A small deposit can be reasonable to secure the booking, but it makes no sense to buy all materials that early and for both bathrooms.

danny13579

SDLT150

Payment is due tomorrow 8th. Company well established and Co House shows in 'good' form. Payment direct to the company. Think I'll email to confirm the options. Thanks for your reply.

Doesn't mean very much, companies go insolvent all the time, you would be an unsecured creditor and at the bottom of the list for getting any money back, chances are you would get nothing back.

Would you withdraw the amount they're seeking in cash and hand it over to them? That's effectively what you're doing with a faster payment.

I would insist on paying a small amount on a credit card, e.g. £100 (can be any amount) and then you have section 75 protection even if you pay the rest by faster payments (assuming the cost of the job is less than £30k).

Grumpy_chap

The Company House information is part of the story. The real part about the strength of the company is how well established the company is and the reputation in the local area. Particularly if the staff at the company are local. A well established company with a good reputation and local staff who don't have any desire to become social pariahs in community will seek to secure that personal and professional reputation.

Rob5342

Any company can go bust, I'd take danny13579s advice about paying some of the balance by credit card if possible.