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how many of you offer financing? usually the customer has to sign a completion certificate after the job is done and thats when you get paid..my question is this,is it common for a customer to not sign in order to avoid getting billed? acting like they are unhappy with a GOOD JOB just to get out of paying> ? how is the contractor(me) protected against this? i know there is court but my guys and materials need to be paid for;is it safer when financing?
 

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how many of you offer financing? usually the customer has to sign a completion certificate after the job is done and thats when you get paid..my question is this,is it common for a customer to not sign in order to avoid getting billed? acting like they are unhappy with a GOOD JOB just to get out of paying> ? how is the contractor(me) protected against this? i know there is court but my guys and materials need to be paid for;is it safer when financing?

The only time I ever loan money without making it legal is when I would be perfectly happy to end up considering the money a gift. It's like backing up your computer. If you've done enough work that you'd hate to lose it, back up. If you loan enough money that you'd hate to lose it, make it legal (and you still might lose it). You probably laugh at HO's who start big jobs like hacking on loadbearing walls without consulting pros right? If you're going to offer financing, you should start a relationship with an attorney up front.

Personally, I'm not big enough to absorb the inevitable occassional loss that would come with a financing plan. Also, when I get asked to provide financing I immediately wonder why the person doesn't borrow money from somewhere else. Is it because everyone else thinks they're too big a risk? Then why should I risk my operation missing payroll when I come up short of cashflow when some borrower doesn't pay?

Last word: if I had no other work anyway, and I didn't want to just relax (what's that?) I might consider a deal where they pay at least materials and some portion of the labor upfront, but only if I thought I could go home one day after being burned and still be happy with my family.

Steve
 

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My End Of Job For Customer Satisfaction form not only asks if they are satisfied, but allows them to write down any potential negative feedback or punch list items that the client thinks should be attended to.

There is also a 7 days limitation from the time that I provide then with that form, to voice any of those concerns they wish to have addressed.

A more legal method instead of handing the form to them, is to send it via Certified Letter with Return Receipt Requested, as proof they received the End Of Job form.

Ed
 

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I steered customers who wanted financing to a local bank I had a good relationship with. The bank was more than happy to work with me and always just wrote the customer and me a joint check which I had the customer sign at the end of the job. I never had any problems doing this.
I also had a FHA Loan company in Oklahoma (Arkansas has screwy finance laws so I was easier to go out of state) that would do financing for me. They were quite a bit stricter than the bank. I had to get a ton of paper work signed if I used them. I only used them a few times.
I was also an authorized contractor for the local Sears Catalogue Store and there were times I've run credit jobs through them. They really cut into my profit.
When you go to the job, show the customer everything they had to sign at the end of the job and point blank ask them if there is any reason they can't sign them if the job is completed to the contract specifications.
I never had any problems whatsoever.
One time a customer came home at noon and I told them we'd be finished at 5 and needed him to sign the forms as he'd promised.
Five O'clock rolled around and no customer in sight. I went to eat, came back and still no customer. That made me mad so I sent all the guys home and decided I'd wait him out. He came home at 2:00, so drunk he couldn't walk and guess who was sitting in his drive? He told me to come back in the morning so he could inspect the job first. I reminded him of our agreement and if he'd come home at 5 I would be home and he'd be happy. He signed off. Sometimes you have to be a little intimidating.
Only problem is my wife was convinced I just stayed out late and the shtf when I got home. This was before the days of cell phones.
 

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if their is a dispute and the homeowner refuses to pay, GE immediately sends out a rep to determine what the problem is..if the homeowner is full of crap or has a minor issue,GE immediately sends you the money and a bill to the homeowner as agreed. they are very good like that.
however,if the contract says blue siding and you install red,thats a problem.
 

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