Conversion Company And Part Payment Upfront

[Mistuk]

hi there

About to embark on a t6 conversion and going to get one company to do most of the work.

The company are well regarded, but don’t accept credit cards and I’m a bit reluctant to pay 50% of the cost via a bank transfer just in case anything goes wrong (company goes bust / problem that can’t be resolved between me and company / etc)

Is this normal practice? Should I be concerned?

As I say, company well regarded on forums.... but it’s an awful lot of money!

Thanks

 

[Fish]

It maybe for the initial outlay of materials and equipment that is to be installed, if this is the case then I can understand it,as the company may not want that burden. If that is correct and anything was to happen you would/should be entitled to these things, you will get proof of deposit for furture reference.
Also, companies that install @HiLo Roofs have to pay full cost for this roof before delivery, but that roof belongs to.you after this point..IMO.

 

[Mistuk]

It maybe for the initial outlay of materials and equipment that is to be installed, if this is the case then I can understand it,as the company may not want that burden. If that is correct and anything was to happen you would/should be entitled to these things, you will get proof of deposit for furture reference.
Also, companies that install @HiLo Roofs have to pay full cost for this roof before delivery, but that roof belongs to.you after this point..IMO.

Thanks for the reply... completely understand having to pay some stuff upfront - just wish I could pay some on a credit card! I’ll check about ownership of stuff with the installer - that’s a good thought

 

[Deaky]

Do credit card companies still do cheques? You only need to pay part on credit to be covered

 

[RussGT6]

Do they take PayPal?
Pay via paypal with credit card possibly?

 

[Lord Mfwic]

Most credit card companies will give a cash advance on interest free. I see no reason why you can't have it paid direct to their bank account. Not sure that would give you the same level cover though.

 

[Eclipse Custom Vans]

Cedit cards cost companies a percentage, say 2%, so if you use a credit card, the company wil be charged £200 on a £10k payment which is why some some wont accept them. Even some of our suppliers only work on BACS. That said, a company should have enough cash flow to cover the costs until the conversion is complete, unless it takes months. If a part is quite unique, say a hightop for a van then I can understand why a larger deposit is needed. We typically take a 10% deposit for the larger items, roof, bed etc and then the balance on completion. We have had customers book in and we order the parts and we never see the customer again, so this is another reason why we take a deposit.
Rgds,
Ian

 

[Salty Spuds]

Personally I wouldn’t feel comfortable with that arrangement. I’d think twice about using that company, regardless of how well regarded they are. We paid a £5k deposit on our conversion but we put £200 on card, the rest by BACS.

 

[Wills]

No way 50%!! Probably non refundable too? They shouldn’t need funding up front if they’re a fluid company with decent credit and full books. You’re stuck with them and they can easily mess you around with dates or go bust!
I paid £500 deposit and that was towards the SCA pop-top.

 

[Eli]

Don’t know why they would need any payment up front as the would have your van. Fair enough for part payments but do some work for it first

 

[Kev63]

I paid £6k up front , which was about 40% of the cost of the conversion. A reputable company with quality workmanship.

Just thought it was normal practice, but must admit, i was a tad worried if things went wrong.


Kev

 

[Eli]

Cedit cards cost companies a percentage, say 2%, so if you use a credit card, the company wil be charged £200 on a £10k payment which is why some some wont accept them. Even some of our suppliers only work on BACS. That said, a company should have enough cash flow to cover the costs until the conversion is complete, unless it takes months. If a part is quite unique, say a hightop for a van then I can understand why a larger deposit is needed. We typically take a 10% deposit for the larger items, roof, bed etc and then the balance on completion. We have had customers book in and we order the parts and we never see the customer again, so this is another reason why we take a deposit.
Rgds,
Ian

Company’s can no longer charge a % for using a credit credit. Law changed last year

 

[Eclipse Custom Vans]

Company’s can no longer charge a % for using a credit credit. Law changed last year

Yes that is correct. However the company is still charged by means of a percentage from the payment amount. That has not changed. So in my example if the bill is £10000 and a customer uses a credit card, the company would receive £9800
Rgds
Ian

 

[Eclipse Custom Vans]

Don’t know why they would need any payment up front as the would have your van. Fair enough for part payments but do some work for it first

Sometimes parts are ordered months in advance of the customer arriving with their van

 

[St4n99]

hi there

About to embark on a t6 conversion and going to get one company to do most of the work.

The company are well regarded, but don’t accept credit cards and I’m a bit reluctant to pay 50% of the cost via a bank transfer just in case anything goes wrong (company goes bust / problem that can’t be resolved between me and company / etc)

Is this normal practice? Should I be concerned?

As I say, company well regarded on forums.... but it’s an awful lot of money!

Thanks

My van is in getting converted just now but it's a very small company with just two brothers . Found them from a friend from work as they are related , they needed payment for all parts and materials upfront and then the labour costs on collection . Didn't see an issue as I now own all the materials and parts but I do see your point on what happens if the go under etc . A think because a friend from work is related it made me feel comfortable and they have been going for at least 5+ years . They also did my roof and had no issues . Some was paid in cash and some in bank transfer .I think the reason they don't accept credit cards is as above has mentioned that they will have to pay a % . Some companies that do take credit card probably take this in to consideration and mibi ad the percentage to the cost of the build so they are never out of pocket

 

[Eli]

Sometimes parts are ordered months in advance of the customer arriving with their van

Maybe some company’s differ, as do customers. I personally would not pay for something I have seen. As if there are issues after the customer has paid up front the customer has knowhere to go. The was an example of this when customers where paying up front to a company that went busted and they lost their money

 

[Eli]

Yes that is correct. However the company is still charged by means of a percentage from the payment amount. That has not changed. So in my example if the bill is £10000 and a customer uses a credit card, the company would receive £9800
Rgds
Ian

You might need to look into that, I run a company and I get the full amount of the payment where I bill someone

 

[Eclipse Custom Vans]

You might need to look into that, I run a company and I get the full amount of the payment where I bill someone

Hi Eli,
I have, we have used world pay, paypal, sage, stripe etc and every one has a transacton fee of varying percentages typically between 1 and 3%, this is how they make their money for their services. If you are charged zero % let me know who your merchant is as it is a win win for all. Thanks,
Ian

 

[Eli]

Hi Eli,
I have, we have used world pay, paypal, sage, stripe etc and every one has a transacton fee of varying percentages typically between 1 and 3%, this is how they make their money for their services. If you are charged zero % let me know who your merchant is as it is a win win for all. Thanks,
Ian

HSBC terminal

 

[Insert Coin]

I had to pay 75% bacs transfer for my HiLo roof, it does leave you a little exposed to say the least.