Can a company advance equipment for a independent contractor and recoup the funds during payment?

Asked almost 2 years ago - Saginaw, MI

The contractor I'm hiring for my company doesn't have the necessary equipment to do the company job, so I was thinking about my company advancing the equipment for the contractor to complete the job, and recouping the advance threw their payment.

Attorney answers (1)

  1. John F. Brennan

    Contributor Level 19

    3

    Lawyers agree

    Answered . This could be possible, just make sure of all of the legal issues are covered, title, insurance, security interest in the assets, contract for services and that the contractor which you are effectively financing has a business plan which will allow their success and the ability to pay for the equipment as well as the rest of its bills.
    Either do it right or this plan is a sure disaster.
    I commonly tell proposed guarantors and amateur lenders that if the proposed creditor cannot get the funds from the pros (the banks and finance companies) EXTREME caution is necessary.

    To the PROSPECTIVE client, please call myself or another attorney for you choice with more detaiils and an... more

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