Have you ever been put off by companies or service providers asking you to make an upfront payment, and found yourself wondering why?
Especially when you’re paying for a service such as getting a new combi boiler installed – generally thought of as a big investment for most families – you should be wary of having to pay cash upfront. We’re going to outline the reasons why below:
Lack of trust
Upfront cash deposits are more common from smaller, independent companies which tend to worry more about getting paid – for instance, perhaps they’ve been proverbially burned in the past and want to cover their own backs with future customers.
On the surface, it seems like a straightforward case of trust (or lack of), because a boiler is such a big investment. They may worry that you won’t be able to pay the full amount of your combi boiler costs, leaving them out of pocket.
Payment for materials
Another seemingly good reason for upfront payment requests is the simple fact that the company in question has to pay for materials and needs to keep their cashflow in check. Sound reasonable?
Not really, as any reputable company will have a 30-day credit agreement already in place with their supplier, so as long as they get paid at the end of the job, all should be fine.
So, you may find yourself asking again; why is there a need for upfront payments?
Here’s the simple answer: there really isn’t.
In fact, if an engineer asks you for a cash deposit or money upfront to install your new combi boiler, it should immediately set off warning bells.
Avoid upfront payments
Not all companies that ask for upfront payments are unscrupulous, but some less reputable companies have been known to ask for upfront payments before simply abandoning jobs halfway through, leaving their customers without hot water or central heating.
In order to avoid being put in a situation where you could lose out, we recommend shopping around for quotes and checking online reviews and testimonials before choosing a company that you’re 100% happy with – preferably one that doesn’t ask for cash in advance for combi boiler costs.
However, if you do absolutely have to make an upfront payment for any reason, always pay by credit card, where you can take advantage of extra protection if something happens to go wrong (see Section 75 of the Consumer Credit Act).
What to expect from Superwarm
At Superwarm, we don’t ask for any money upfront; only when a job is complete to the customer’s satisfaction. In fact, we’ll even give you £400 cashback for your old boiler, and extra cashback if we’re late completing a job or you’re left unsatisfied with the condition of your home.
Conclusion
If you’re going to take anything away from this article, it’s that you shouldn’t have to pay any upfront costs towards your new boiler, as most reputable companies should have a 30-day credit agreement in place with their suppliers.
However, if you absolutely must pay an upfront deposit, you should always choose to pay via credit card so you’ll be protected under Section 75 of the Consumer Credit Act if anything were to go wrong.
