Slow payers and small business

[Derlyn]

@Blurock

100%, my brother.

Another word of advice for the newbies ...... although a good source of work, if at all possible, steer well clear of estate agents and conveyencers and the business of COC issuing for property transfers.

Leave it to the big boys, unless you deal directly with the seller on a cash basis, which is usually not the norm.

No1. You don't know when you gonna be paid.

No2. You don't know if you gonna be paid.

No3. Giving the attorney whose doing the transfer, credit, is illegal, unless you are a registered credit provider.

Should the deal fall through and go sour, the same attorney who accepted credit from you, without batting an eyelid, will tell you that you should not have provided credit as you are not registered to do so.

They are snakes.

It does not help making R1000 per job on 4 jobs and then lose R4000 on the fifth job. You have then done 5 jobs for free.

Use it, don't use it. Been there, done that.

Good advice there, Blurock.

[Dave A]

No3. Giving the attorney whose doing the transfer, credit, is illegal, unless you are a registered credit provider.

Should the deal fall through and go sour, the same attorney who accepted credit from you, without batting an eyelid, will tell you that you should not have provided credit as you are not registered to do so.

They are snakes.

And that attorney was selling you snake oil - probably in an attempt to save their own skin. The National Credit Act is nowhere near that "simple".

True enough though that you need to take adequate measures upfront, have adequate capital to cover what you are financing, and know that you are going to lose some money on deals that have gone sour every now and then. Essentially, you need to ask some hard questions, get written undertakings and price in the risk before you grant terms of "payment out of proceeds of transfer".

[Firepool]

@Blurock

100%, my brother.

Another word of advice for the newbies ...... although a good source of work, if at all possible, steer well clear of estate agents and conveyencers and the business of COC issuing for property transfers.

Leave it to the big boys, unless you deal directly with the seller on a cash basis, which is usually not the norm.

No1. You don't know when you gonna be paid.

No2. You don't know if you gonna be paid.

No3. Giving the attorney whose doing the transfer, credit, is illegal, unless you are a registered credit provider.

Should the deal fall through and go sour, the same attorney who accepted credit from you, without batting an eyelid, will tell you that you should not have provided credit as you are not registered to do so.

They are snakes.

It does not help making R1000 per job on 4 jobs and then lose R4000 on the fifth job. You have then done 5 jobs for free.

Use it, don't use it. Been there, done that.

Good advice there, Blurock.

The company I work for has 3 divisions , maintenance , compliance and construction and big jobs on all three divisions . Loose most on maintenance but can handle lots of little bad debts as some people will just not pay . construction takes too long and low margins and eats cash flow . Compliance is very negative aspect but lots of work around

You can get paid on transfer by the attorney and get it in writing . The money is more guaranteed from coc work than construction . The problem with the coc work is just the general lack of understanding of most stakeholders which is bad for your reputation even when you trying to do the right thing . Too many know it all house wives .
Never had issue with lawyers but estate agents are hard work and can be very fickle with no loyalty .

Not saying your above is wrong by other people as good to have different views as well all deal with Same issues and find the posts by Dave and derlyn very insightful on this forum.