Make sure your renovation payment is paid to a business account

Please do not, under any circumstance, transfer your renovation money to a personal account.

Watch our tiktok video on this if you lazy to read.

Homeowners fear that the ID will run away with their money. Did you know that renovation firms have the same fear?

Renovation firms hire IDs to help them to meet customers, close customers and thereby scale. When a customer signs the contract, the payment is to be made to the firm. Upon completion, firm will then payout the “commission” to the ID. Typically, the ID earns about 50% of the profit and the firm takes the other 50%.

Now, there is a “loophole”. It is entirely possible for the ID to close the customer, but not reveal to the firm.

Without stringent oversight over the ID, communication tends to be privy between the ID and the customer. If the ID manages to convince the customer to transfer to their personal account, it is easy for them to run away with this money.

The downpayment alone is normally more than the profit the ID earns, that will take several months to come in.

The firm has to then handle the aftermath, both the actual customer and the reputation hit. If the firm subsequently decides to dispute the contractual agreement, it is one hell of a mess the customer has to go through.

Hence, we highly recommend that you make a bank transfer via the UEN number, while making sure that it matches with the company name.

Cr: LOL Corporate Website

UEN is unique to every business. It is sort of like a business’ NRIC. Only businesses are allowed to have UENs. This eliminates the threat of an individual running away with the money.

On top of that, check that the UEN matches the company name. You can do so here, or it should also appear before you confirm the transfer.

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