Net 30 vs. upfront payment: which works better for you?

Out of curiosity, have you ever run into issues where a contractor asked for too much up front? Sometimes I see folks get burned that way...

Yeah, seen that happen more than once. Here’s how I handle it: First, I never ask for more than the material deposit—usually 30-40% tops. If someone’s asking for half or more before even starting, that’s a red flag. I always tell folks to get a clear breakdown: what’s for materials, what’s for labor, and when each payment is due. If the contractor can’t explain it, walk away. Too many people get stuck when the job stalls and their money’s already gone.

I get why some folks want a big chunk up front, but honestly, it makes me nervous. When I had my kitchen redone, the contractor only asked for enough to cover materials, and then we did payments as milestones were hit. That felt way safer. I’d never hand over 50% before seeing any work—just seems risky. Net 30 sounds good in theory, but I doubt many small contractors would go for it unless you’ve worked with them before. For me, a clear payment schedule tied to progress is the sweet spot.

I’m with you—handing over a big chunk before anything’s done just feels off. When I did my bathroom, the contractor wanted 40% up front and I pushed back. We settled on materials only, then paid as stuff got finished. It made me way less anxious. Net 30 sounds nice but honestly, I don’t think most smaller contractors can float that unless you’re a repeat customer or something. Progress payments tied to actual work done just seem fair for both sides.

Progress payments tied to actual milestones are definitely the most workable option in my experience. Upfront for materials makes sense—especially with how volatile prices have been lately—but asking for a big chunk before any labor starts? That’s a tough sell, and honestly, it puts both sides in a weird spot if something goes sideways early. Net 30 is great in theory, but unless you’re running a big operation or have a long-standing relationship, it’s just not practical for most smaller trades. I’ve found that clear payment stages—materials, then after tear-off, then after install—keep everyone on the same page and reduce stress all around.

- Net 30 never really worked for me unless it was a long-time client. Too much risk, especially when suppliers want their money up front.
-

“Upfront for materials makes sense—especially with how volatile prices have been lately...”