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Has something changed on the expectation of getting a reasonable deposit/down payment at the beginning of a job?
I submitted a bid, that was accepted by the customer, who took it to their bank for financing. The bank has agreed to provide financing.
Now that we are ready to sign the contract, with my payment schedule included (that incudes a down payment), I am told that the bank wishes to handle all payments directly.
I went to the bank with all requested paper work and they told me that they do not give any monies out in the form of a down payment, only as draws as work is completed.
The part that is driving me up the wall is that both the bank and the customer find my demand for a down payment as out of line.
Is a down payment on larger, bank financed jobs a thing of the past now?
This is an addition ($54,000) that I am asking for a 25% down payment.
In hind sight I am realizing that in the past 6 years every customer that I built for either had the money to self finance or was a small enough job that it was covered by a home equity loan. And all were able and willing to meet my payment schedule.
This is not so much that I fear for getting my money, it is just that I don’t feel I should be financing the entire job between draws.
Down payments have been a standard in my contracts for some time, the percentage will vary depending on the type of work and materials needed.
Am I out of line?
Terry
Replies
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Has something changed on the expectation of getting a reasonable deposit/down payment at the beginning of a job?
I submitted a bid, that was accepted by the customer, who took it to their bank for financing. The bank has agreed to provide financing.
Now that we are ready to sign the contract, with my payment schedule included (that incudes a down payment), I am told that the bank wishes to handle all payments directly.
I went to the bank with all requested paper work and they told me that they do not give any monies out in the form of a down payment, only as draws as work is completed.
The part that is driving me up the wall is that both the bank and the customer find my demand for a down payment as out of line.
Is a down payment on larger, bank financed jobs a thing of the past now?
This is an addition ($54,000) that I am asking for a 25% down payment.
In hind sight I am realizing that in the past 6 years every customer that I built for either had the money to self finance or was a small enough job that it was covered by a home equity loan. And all were able and willing to meet my payment schedule.
This is not so much that I fear for getting my money, it is just that I don't feel I should be financing the entire job between draws.
Down payments have been a standard in my contracts for some time, the percentage will vary depending on the type of work and materials needed.
Am I out of line?
Terry