“Heavy upfront deposits help cash flow. We take 25% on acceptance and another 25% one day prior to starting.”
"Valid and reliable companies take massive risks for every job we take on"
September 3, 2019 by canadiancontractor
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.