As an example. If we sell a house roof for say $330.00 per square and it is 18 sq. A 30 year roof will cost us about $1200 bucks in parts(give or take a few dollars). The total price on that job is $5940.00. Which means at the time of sale or about a week before the job is schedule to begin we will collect funds from the homeowner for the amount of $2970.00. We don’t owe the supply house until 30 days after we deliver the material. By then we have the job done and have been paid in full. I just don’t see how you can get hurt or go upside down by doing this. Plus if you are busy there should always be a positive cash flow.
I’ve never had it happen but if a customer paid 50%down. and then we deliver the material and the homeowner wants out of the contract before the roof is installed. Then i would give them back thier money minus the material cost and let them keep the material. Because At this point If they are committed enough to put down 50% knowing we are delivering the material or starting in a week then they should have no reason for backing out.
In the case of delivering the material before we get money, it doesn’t happen very often(less than 5% of our jobs). We only offer it when you have that customer who just doesn’t trust giving someone thousands of dollars with no guarantee other than the one in writing.
BTW, I have accounts that only my name is on, and someone would be serious trouble if they allowed anyone besides me to access those accounts. So get one without her name on it if she’ll allow it lol