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RE: Contractors: Run Credit Checks for Questionable Customers?
Subject:RE: Contractors: Run Credit Checks for Questionable Customers? From:"Gordon Graham" <gordon -at- gordonandgordon -dot- com> To:"TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com> Date:Fri, 17 Aug 2001 12:52:39 -0400
> Most business people understand the need for a substantial up front
> payment.
No they don't. I would never pay a contractor up front for work. Never,
ever. How do I know the contractor won't take my money and just run and
never do the job. Do you pay the plumber, lawyer, or doctor upfront? No...
Get a contract signed that is comprehensive and says, in effect, customer
agrees to pay and if he doesn't you can sue him. Its the best assurance
you can get...
=====================
I totally and utterly disagree on this one. I would NEVER work for a client
with that kind of rotten attitude.
A company is much bigger than an individual contractor. Why should all the
risk be on the little guy? It's true, trust has to work both ways. If you
are worried that your contractor is going to take the money and run, I
suggest looking for another contractor who has a more stable track record.
With a new, unproven (small) client, I always ask for 1/3 up front, or at
least a "good faith" payment of $2,000. or so on a sizeable contract. If a
client has problems coming up with a token payment at the very start of a
contract, when they need me badly, how likely are they going to pay when the
work is all delivered and they don't need me any more?
This is a little test I use, and if they flunk it, I look elsewhere. I'm not
interested in suing someone and laying out cash for lawyers. I just want to
get paid for my work. With this approach, I have only had one bad debt of
$250 in 18 years in business.
Of course, with a name-brand company, I am not so worried about getting
paid. But I still try to get an advance, instead of waiting for 90 days like
some of them like to make their suppliers wait.
===============================
Gordon Graham, partner
Gordon & Gordon
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Technical Writing for the Real World
Marketing Writing for the Real World
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Tel (514) 488-1875
Web http://www.gordonandgordon.com
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