Commission Payment Terms

Why is 100% of the price of a commission due when invoiced?

When I begin a commission, I have to order and pay for specific steel and fixings for that commission. I then cut the materials to size so at that point there are only two uses for the material. It either fits the commission or it is expensive scrap. I have spent time, cost and overhead creating scrap if a client defaults.

I am not in a position to take the risk of a default on an order. This is standard practice – for example, Agriframes, who are a major supplier of garden arches and large structures, specifically state that no contract exists after placing an order until they have cleared funds in the bank. If large organisations with their cash reserves feel unable to take the risk it is no surprise that a very small one-man blacksmith like myself is unable to sustain the risk either.
Thank you for your cooperation.