taking payment for hardware/materials before commencing work
Discussion
How is this seen in any trade from both sides?
example:
If i wanted a builder to make me a wall or some construction work i would only pay once the work is done and that i am happy with it and i would assume that the company would have enough funds to pay for what was needed. If they wanted payment for all the materials up front, i would probably think that something dodgy was going on and probably not use them. This probably stems from my dads friend loosing 7K to a builder that needed the money up front for the materials and then not coming back.
But how is this seen in other trades?
On the other side of the coin, if i was to buy a PC on behalf of a client and at a discounted price than what they could get it for, would it be acceptable to ask for full payment of the hardware before buying it for them?
Or would they see it in the same light that i would look at a builder (these trades are only used as examples, first that come to mind).
example:
If i wanted a builder to make me a wall or some construction work i would only pay once the work is done and that i am happy with it and i would assume that the company would have enough funds to pay for what was needed. If they wanted payment for all the materials up front, i would probably think that something dodgy was going on and probably not use them. This probably stems from my dads friend loosing 7K to a builder that needed the money up front for the materials and then not coming back.
But how is this seen in other trades?
On the other side of the coin, if i was to buy a PC on behalf of a client and at a discounted price than what they could get it for, would it be acceptable to ask for full payment of the hardware before buying it for them?
Or would they see it in the same light that i would look at a builder (these trades are only used as examples, first that come to mind).
If the builder doesnt have the money themselves or be able to get their own cashflow sorted, or have a credit account with their supplier that would ring bells for me.
Once the materials have been bought and on my property, I would then have little problem in paying the invoice amount for the materials.
The same would really go with any industry.
Been burnt myself for a couple of grand when I started my business and made the same mistake. There were pressures on me to get his part of the work done and other outside factors which made me take the chance on discounting my rule above and lost out big and it took me months to get my money back as well as having to redo all of the work the contractor was supposed to do.
Once the materials have been bought and on my property, I would then have little problem in paying the invoice amount for the materials.
The same would really go with any industry.
Been burnt myself for a couple of grand when I started my business and made the same mistake. There were pressures on me to get his part of the work done and other outside factors which made me take the chance on discounting my rule above and lost out big and it took me months to get my money back as well as having to redo all of the work the contractor was supposed to do.
We've bene in a similar position a couple of times. Generally you have to try to limit your exposure, if they are asking you to provide tens of thousands of quids worth then you should probably has for all or at least part payment up front. If it is a few hundred quid then don't worry about it but give them nothing until you have the cash.
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I often supply computer hardware to clients at not much more than cost price. Once the computer is in the client's office, I expect to be paid for it.
Depending on the client and scope of the project, I may ask for payment up front. For example, I'm about to start a large project with an existing client which will require about £10k's worth of hardware. I've had issues getting this company's bills paid on time before, so I've given them the choice of ordering the goods themselves, or paying me on the day of delivery.
Depending on the client and scope of the project, I may ask for payment up front. For example, I'm about to start a large project with an existing client which will require about £10k's worth of hardware. I've had issues getting this company's bills paid on time before, so I've given them the choice of ordering the goods themselves, or paying me on the day of delivery.
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