Make a down payment: only if there are guarantees

The risk of making a down payment is sometimes high. If nothing is arranged, someone will lose all their money if the company in question goes bankrupt. So do you have to pay a deposit or not? And is a down payment actually required?

Is a down payment required?

The law states that a seller may stipulate that a buyer must pay a maximum of half of the purchase amount as a down payment. Even more can be requested verbally, but this is not legally substantiated. The consumer decides whether he agrees with this. If you don’t want to pay a deposit, you can simply go to another store. There is a risk that the company will go bankrupt if a down payment is made. The person who has already given money will lose it all.

Bankruptcy and down payment

If a company goes bankrupt, the entrepreneur no longer has control over his money and goods. A curator takes over everything. The money and goods that are left are used to pay the creditors. But an ordinary consumer has to go to the back of the queue. Taxes, the bank, large companies and, for example, a landlord of a building come first. The chance that a consumer will see anything back from the money he has paid is actually minimal. And anyone who has just paid a thousand euros or several thousand euros for a kitchen, a bathroom or something else will have a nice stay in the monkey.

National Deposit Guarantee Fund

Ger van der Molen, together with his son, founded the National Deposit Guarantee Fund Foundation (NWA). The money that someone has to pay goes to the foundation, which manages the money in its guarantee fund. The supplier will only receive the amount when the goods have been delivered in accordance with the agreements made. If this is not the case, the consumer will receive a full refund. In the event of bankruptcy, the buyer also gets all the money back. Anyone who wants to do business in this way must find a supplier who has joined the NWA. However, you must pay for this service. For a down payment of up to 100,000 euros, between 50.50 and 179.50 euros must be paid. The higher the amount of the down payment, the higher the amount paid at home. In principle, the consumer pays this amount, but many suppliers also pay for it.

Central Housing Trade Association

The Central Housing Trade Association also has a scheme for consumers who have made a down payment with a bankrupt company that supplies articles in the field of housing. The consumer will not receive any money back, but will receive a voucher. But here too, the stores must be affiliated with the CBW. And that’s less than 20 percent of them. The remaining 80 percent therefore returns nothing in the event of bankruptcy. Checking whether a store is affiliated with the CBW is easy. The website: shows which stores have joined. However, in this case a maximum amount will be reimbursed. The deposit will only be refunded in the form of a voucher up to a maximum of 25 percent of the total amount. So anyone who pays more down will not get the entire amount back. For kitchens, sanitary facilities and hard floors, only a 15 percent deposit may be paid.

Travel Guarantee Fund Foundation

When traveling, it is best to choose an organization that is affiliated with the Travel Funds Guarantee Fund Foundation. In the event of bankruptcy, the SGR will repay the full amount. Moreover, 95 percent of travel organizations are affiliated.

Plastic Facade Industry Association

There is also the Plastic Facade Industry Association (VKG), which guarantees the down payment for plastic frames, windows and doors. In the event of bankruptcy of the supplier, the buyer will receive the amount of the down payment back in the form of a discount from another company that is also affiliated with the VKG. This may not be more than 30 percent of the total purchase price.