Electrician Wants 50% up front

[Larry H.]

Flipping my first house and first time dealing with sub-contractors.  The electrician that gave the best bid wants 50% up front.  I balked at that and he said he can do 25% up front.  He said he doesn't want to fund it himself and I told him that worries me if he can't fund a job this small.  He said it's not that he can't, but he doesn't want to.  I live 8 hours away from this job.  

I'm using a rehab loan with a local bank and they have a draw schedule, which I doubt includes up front payment.

What is the standard?

[Matthew Paul]

You dont trust him and he doesnt trust you . How does the contractor know that you are good for the money especially when you arent a local ?  Why as a contractor should he finance your job ?  Copper wire , breaker panel , permits arent cheap materials are close to the 50% he wants . Supply houses do offer credit , net 10 days usually then there is a carry charge after that . Then you have labor , so he gets the rough in done and has all his money out and has to wait till you get a draw ?   Thats what he is avoiding . 

I am a contractor , no deposit , no work , no exception . My funds are working for me in my investments , not the customers . If I have 3 or 4 jobs running and I am fronting materials , I could have 10's of thousands of dollars out . Then waiting for my money , not.... Thats not a contractors business , thats what banks do .