I’m recently starting up a freelance web design sole proprietorship on the side, and a recent client of mine backed out of a contract stating that it was illegal to demand a security deposit. From my research no actual signs point to this statement as being factual, yet I would like to confirm my suspicion.
In God We Trust. All others, pay upfront.
Unless you’ve run their credit, or a D&B on their business, you’re assuming all the risk for getting paid AFTER you’ve completed the work. Of course, if you’re dumb enough, I mean if you choose, to run your business that way, you’re entitled to do so. But nothing in the law prevents you from requiring full payment, partial payment, down payment, deposit, or retainer.
The customer may be always right, but some customers you’re better off without. Sounds like your client was one of them.
In fact, I do occasional work for political parties. I take cash or credit card for the full amount, up front, or no work. Republican or Democrat, both have screwed me in the past. As soon as the elections are over, the checks bounce and the temporary corporations they created have been dissolved.