“Heavy upfront deposits help cash flow. We take 25% on acceptance and another 25% one day prior to starting.”

Last week, we published the results of an informal poll of Renofocus contractors and found out that, in general, they take a 10 per cent deposit before jobs begin. You can read the entire blog here. Monte from RapidLawn, a landscaper in Regina, Saskatchewan responded to let us know what he requires in upfront money and why:

I agree, it’s an industry where there is little trust. But valid and reliable companies take massive risks for every job we take on. Too many times we’ve finished a job and then the owner says they aren’t happy with ABC and “won’t pay anything until it’s fixed”.

Also taking a deposit helps cash flow big time. Otherwise you are bank rolling your customer for a period of time.

I own a landscape business and we take a 25% booking deposit on acceptance of quote, 25% one day prior to starting the project, and the remaining 50% due and payable the day of completion.