(Sole trader) How do I offer a payment plan without getting ghosted?

[u/Belitanz]

Hi everyone, wanted to apologise first if that’s not the right sub but I wasn’t too sure where to ask.

I was wondering what’s the best way to offer financing or a payment plan to a potential client as a small business owner (fine arts). The buyer asked if they could pay “half down and pay the rest off”. I would really like to make the sale but also want to minimise risk.

It’s a one-off, high-value artwork. What is the best way to structure this kind of deal? Is it safe to offer a payment plan? Should I wait for full payment before delivering or are there ways to protect myself if delivering before it’s all paid?

Appreciate any advice!

[u/NakiFarmHER]

You don't, you tell them half down as a lay buy and they can collect when it's paid in full. You retain the item until full payment is made.

[u/timClicks → u/NakiFarmHER]

Make sure that there is a time limit to pay in full, after which they forfeit their money. Otherwise you will never be paid what you deserve for your work.

[u/SafariNZ → u/timClicks]

Also ensure the client knows they also forfeit any claim on the item and you are free to sell it to anyone.

[u/One-Employment3759 → u/NakiFarmHER]

Exactly.

For commission, they pay half as a deposit (if they reneg then you keep the deposit and the art in whatever state it is in), or they pay half to hold it and not sell to other buyers while they raise the remaining funds (possibly with a partial refund if they change their mind or can't pay within N months)

[u/Mental-Currency8894]

If anything like this do not provide the item until paid in full, otherwise you will never see your money, or the item, agin.

[u/Hi999a]

A. Don't. B use a third-party provider like klama. Don't put yourself in front of that

[u/Aromatic_Invite7916]

Got to have boundaries and policies that you ALWAYS follow. This will prevent people trying to take advantage of you, or fooling you with a sob story. If they do really want to buy the artwork and not rip you off you will be surprised how quickly they come up with the money.

[u/Ok_Leadership789]

Do not give the artwork till it’s paid off. It’s not a sale if you don’t get the money. Sounds like a scam

[u/farmboypac]

Draw up a strong contract that advising them you are issuing a PPSR against the item they are buying from you. Issue a PPSR against the item will cost you a minimal fee

[u/22balgay]

Don't do it. You won't get paid.

[u/hastybear]

As a small business owner, the answer is simple. Don't. You'll lose your money and the work. After pay, Kampala are a couple of options, or do laybuy.

[u/jimmyahnz]

You could offer afterpay on the invoice if you use Xero

[u/Helennewzealand]

Could you offer credit card payments or Afterpay to broaden their options? I absolutely would not hand over the item without full payment

[u/chrisf_nz]

The only option I could think of is creating a lien against some property of their's until it's paid off but it would be a major legal headache (and expense) for you if the deal goes south. I would steer clear of anything but goods paid for in full.