Contractor payments - do they expect some upfront payment?

[Jacqui Dolan]

I will be rehabbing my investment property (property manager will oversee) and am wondering if contractors expect some upfront payment (e.g carpet layer to buy carpet, cabinet maker for kitchens). I currently have a small outstanding mortgage with a non-bank lender and if they provide me with funds to rehab, they require that all work be 100% complete, on-site and installed and inspected by them before funds are released. Do most contractors expect this or to be paid something upfront? Are there more flexible lenders available (non-bank) who will provide the funds in a different manner?

[Matthew Paul]

@Chris Merchant On smaller , quick in and out jobs thats not a problem with most contractors . But when the dollar amount of a job increases  a contractor would definatly require a deposit .  Large and small contracting business have funds , but there is no logical reason for a contractor to use their funds or credit to finance a customers project .  Its a foolish business practice unless there is a very good relationship already established . 

I am running 4 to 6 jobs at a time , that could be $125K to $300K of materials and labor I am covering out of my business account . This isnt a good use of funds , that same money should be earning money for the business .

We do offer financing options to the customer .