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Asking for a deposit for a project does something very important: it pre-qualifies the party asking for the work in multiple dimensions. Here's what I mean. If
by Don_Wallace 15y ago
Asking for a deposit for a project does something very important: it pre-qualifies the party asking for the work in multiple dimensions.
Here's what I mean. If they can get you a check cut for a portion of the amount of the project, then you just learned three important things about them: (a) they take you and the project seriously and are committed to your doing it; (b) they have both the signing and check writing authority to commission the project; and (c) they are able to control their organization from their end in order to make the project happen.
If it is not a major corporation and you don't get a deposit up front and you just start working, then any number of bad things can happen:
- You find out that they never intended to pay and they consider your demands for payment a joke.
- It turns out that they are powerless smurfs with no signing authority
- It turns out that there is absolutely no support for the project internally
In any event, it then becomes a crap shoot for you. If you get a deposit it is possible that you may be stiffed on later payments, but it becomes highly unlikelier by orders of magnitude.
A signed purchase order from a large company should be enough to go on, I guess. I have always asked for deposits.