aibu re paying builder in cash?

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Please advise me. Renovating a house for me and DC. On my own. Went via check workman type website. Got three quotes ect
Picked builder. Checked his work ect. First job done. He text me a few days ago wanting paying in cash. I was a not shocked as thought this was a no no.
Job finished yesterday.2_pm he called me asking for cash as needed to pay workers. Told him was paying by.building soc.check. He wanted cash. Then asked for it to be paid into his bank Acc asap. Like in next half hour.
Wasn't happy when told couldn't due to school run. He then text his bank details and not happy could not do it until this morning. He wanted to know what time I could do it.
Told him need receipt and work guarantee. He email and txt re cash.between 11pm and 1.30am. First text on phone his at 7am today. He would email and then text to say he had sent email. He has only done this re cash. Never did it before. He also has key to property but locks being changed.anyway. is this wrong? Muddy headed due to my mh issues
Need.to know or advice needed please. Does anyone have experience of building trade or am I buhelp have no one to help.or advise me
Tia

I think you should have mentioned that you would prefer to pay by cheque when he originally asked for cash, as that would have given him a chance to factor in processing time. If you pay by cheque several days after the job has finished, then adding on the time for the cheque to clear can cause a cash-flow problem and annoy workers on whom he is relying to stick with him.

He cannot provide a receipt until he has been paid, and I can understand him wanting to hold off on the guarantee until he has been paid as that is the only leverage he has now that he has completed the work.

He ha supplied time, labour and materials in good faith of prompt payment, so I think you need to get the cash together asap and possible apologise for the misunderstanding if you think you might want to use him again.

I know its been said but I much prefer cash. All goes through the books. I pay a fortune on materials. Often using my own money rather than the businesses if cash flow is poor. I've been eking out food and rationing heat (meters) and waiting on huge payments to clear..

Interesting. We are having a kitchen fitted this week. I paid 1/3 upon receipt of invoice when we agreed dates and quotes. I will pay 1/3 upon receipt of invoice when all of the units are delivered. At that point, ripping out, plastering and flooring will have already been completely. I will pay the final 1/3 upon receipt of invoice and satisfactory completion (E.g. Contractor and I walk around and snagging completed) of the project.

This will be by bacs which I consider to be cash. As opposed to credit.
OP I would do bacs in your position.

We have a small family building business, cash flow can be a nightmare! We say from the outset that we invoice fortnightly on a % of the quoted price for work done and materials on site (customer not asked to pay for more than they have had) and we expect payment by bank transfer within 7 days. We also employ subbies (ie plasterers or plumbers) who expect payment regularly - why should we pay overdraft fees because a customer won't pay on time?? We are not barratt homes - just ordinary working people, we don't make mega bucks so why should we give free credit and subsidise late payers?

If we are not paid, we still have to pay the subbies and the merchants, the worry and stress caused can be awful. Imagine if your salary payment depended on the whim of your employer every month.....We he pay, will it be late, will he just not pay at all or decide to give you a pay cut as he has run out of money??

We have one at the moment, owes us several thousand, they have overspent and are having problems with their mortgage, apparently. No problems with the work (I have asked) we just have to wait. 3 months now and counting....thin Christmas here

We take 50% deposit on delivery of materials and invoice on the day the job is completed, customers can pay cash (which is legal tender), cheque (pita) or by bank transfer.. For smaller jobs we are thinking about using a pdq machine/ mobile app to help cash flow..
All customers are given detailed quotes, invoices and contracts. Non paying customers and slow payers are given notice of action letters and then pursued by the courts and in some cases private debt collectors..

I also run a business connected to the music industry payment terms for booking artists are large deposits and full payment upfront before performance dates..

I'm on my phone so can't chk who mentioned employees being lucky to rely on a regular wage but wtf!! My dh works in a 3man building firm - if clients don't pay - how the hell can his boss pay him??
Don't get me started on the most recent clients (know them through school) who went on holiday without leaving the money as promised - & then had the nerve to ask if we had enjoyed our October holidays!!! No we feckin didn't as DH hadn't been paid. Tradesmen aren't a form of overdraft - you wouldn't walk into tesco & ask to pay in 6nths time would you?
Sorry rant over & not really aimed at you OP!

I never pay workmen by cash.
always banktransfer (after inspection, the day after usually). one dodgy experience too many -workmen turning up again to demand cash despite being paid already.

I always pay tradesmen in cash on the dot, assuming work is satisfactory. Frankly i dont care if it's a tax dodge. If filthy rich fuckers can avoid tax via tax avoidance schemes, why shouldn't small traders?

As someone who has spent many a night tossing and turning after being at the mercy of clients deciding when they'll pay up I say yabu, pay the man! It won't just be him, there'll be subbies and others waiting for cash, he'll have paid out for the materials.

I agree. Personally i cant understand why the Op hasnt planned up front for this and had the cash ready for when job finished. selfish.

I think when the builder first asked for cash the OP should have told him then that she was intending to pay by cheque or transfer.

Perhaps then he could have asked for a part payment.

my DH is self employed plasterer & always asks for cash or instant bank transfer as previously said, he has to pay for materials & his labourer. everything goes through the books at the end of the year though. cash is perfectly fine!!

tbh when i had building work done i paid cash and straight away. They all wanted cash.

The clients that annoy me are the ones that ask for a quote with the plaintive caveat "we haven't got much money". Shall I try that next time I go into the white company and see what response I get?!

@simontowers

Tax dodging is not good for small traders as the honest joes lose out to people on the fiddle and that is not fair.

DH works in an area where knowingly - or even unknowingly, tbh - using a business that COULD be avoiding tax would cost him his accreditation and his job.

We completely gutted and re-furbished our house some years ago, and were very clear upfront with every tradesperson that we could not pay in cash for this reason. About 1 in 3 people who turned up to quote left without even looking at the work to be done.

Every tradesperson that we did use invoiced us in several stages:

1. For materials, early in the job
2. Regularly, at agreed intervals, as the job proceeded
3. At the end of the work, once it was completed

Almost always paid by online bank transfer, on the day of the bill. One person, who did a relatively small job taking only a couple of days, preferred cheque. Helped that we were either at the property every day, or after a few weeks for the water and gas works to be completed, in residence, so inspecting the woprk was a formality.

It is probably completely unrelated, but every tradeperson we used was excellent, had no problem at all coming back for any snagging issue, and were then, and are now, established local businesses that continue to thrive through excellent word of mouth reputation. Several of our '1 in 3 who didn't quote' have long been out of business, so we are very glad we didn't use them.

I'm self employed. I totally understand.

But. Doing work on an empty property you can't just call the owner at 2pm and say "ok I'm finished come round and look and pay right now".
And then text in the middle of the night for a transfer of money from somebody who has no way of knowing if you have done it or not!

Yes, teacher the onus is absolutely on the buyer to do appropriate checks to ensure tax is being paid. In the industry I work in several companies have received large fines for employing people who weren't paying tax. ATM, AFAIK, it's only corporates and public bodies who have been fined, but I don't think it's right for individuals to turn a blind eye because it gets them a good deal and they think they can get away with it.

Pay him what you owe him! How would you feel if you didn't get your wages yesterday because someone didn't like your preferred payment method!

Folk like you are a nightmare for small companies who are just managing to survive!

I would advise that you go as soon as possible to check the work has been done satisfactory and then pay as soon as you get the guarantee.
I run a business and still have outstanding invoices from September, some going through small claims.
It is horrible when you have done work, fair and square and people do not pay up.
I still have to pay out my staff on time. I have to pay out for materials and equipment upfront.
The ones that annoy me the most are customers who think an invoice is a starting point for negotiation. I would love to try that on in a high street shop and see how far I got. The invoice is the invoice, pay it or go to court.