The "Deposit" Trap
(The Ponzi Scheme)
Why paying 50% upfront is the #1 way to lose your money, and why verified pros don't need it.
Executive Summary
- THE MYTH:"I need 50% down to buy materials."
- THE REALITY:Solvent businesses have trade accounts (Net-30/60 terms). They don't need your cash to buy lumber.
- THE SCAM:Using your deposit to pay off the *last* customer's lawsuit or debt.
The "Cash Flow" Lie
"I need a deposit to get started." It sounds reasonable. You want to show commitment. But in the home services industry, a large deposit request (30-50%+) is the single biggest indicator of financial insolvency.
How "Robbing Peter to Pay Paul" Works
1. Contractor creates a debt hole on Job A ($10k behind).
2. He signs you (Job B) and demands a $10k deposit.
3. He uses your money to finish Job A so they stop threatening to sue him.
4. Now Job B (Yours) has $0 budget. He needs Job C's deposit to start yours.
When the music stops, the last homeowner loses everything.
The AboveBoard Standard
Verified Pros on our platform undergo financial checks. We prefer pros who take:
- $0 - $1,000 Down to schedule.
- Pay-as-you-go (Progress payments).
- Payment upon completion (For smaller jobs).
Protect Your Wallet
Find pros with the capital to build, not just the need to bill.