Posted by JD Seller on August 19, 2015 at 17:52:10 from (208.126.198.123):
Rusted has a post below about how he pre-paid on a canvas hoop shelter and now can't get it delivered or even a reply. It seems like there are more and more companies that are trying to get the CONSUMER to finance the company's operations. I refuse to pre-pay on some thing like this. I have several Morton building and they tried to get me to do this. I said no way no how. I will pay on delivery and or completion but not pre pay. I gave them a letter of credit from my bank that PROVED I could make payment as required and they built my buildings.
There are a bunch of people around here locally that are hurting on this prepay deal. There was a fellow that made/rolled sheet steel for buildings. He started having guys pay a percentage down with the order. Like 50%. I know of several people that paid over $10K to him. He is bankrupt. They will get NOTHING as the first secured banks will not even be covered.
So my questions is: Why in the world would you pay for something before it is even made???? I know companies will tell you they NEED to be sure you will take the order. I could see that if it is really some thing odd but a pole barn or a hoop building is not an odd thing. If you do not buy it then they can sell it to some one else. I think it is more of a financing scheme. Your fronting/loaning the money to the company to BUY the materials for them to MAKE your product out of. That really seems very risky to me. Your turning yourself into an unsecured creditor for the manufacturer. Am I one of the few that sees this as BAD business in general????
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