How do I make sure employee doesn't run off with my money?

Discussion in 'Growing and Managing a Business' started by bo0ga, Dec 26, 2012.

  1. bo0ga

    bo0ga
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    I am about to start a small side stream of income that involves picking up used items on Craigslist from locals in my neighborhood. I want to hire a driver to go around picking the stuff up. In order for him to do so, I would need to give him my cash to pay the sellers. The cash will range anywhere from 200-1000 dollars depending on the item. I don't want the guy to disappear with my money. How can I protect myself?

    The only thing I can think of is some kind of collateral. The only problem with this is he might give me fake collateral eventually meaning if I take his credit card at the beginning of a shift every day, he might give me a fake credit card one day.

    Any ideas?
     
  2. noreturn

    noreturn
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    The best site to do that is have a written form, so when they are buying something they have the seller feel out a form saying that they sold this for how much. And then when he comes back you get the item with the writer from the seller filled out, and then you have the money left over and subtract it from how much you gave him. Then you know that he did not steal any money. I mean anyway you look at it there is going to be a way to steal the money, you just have to find ways to prevent it. But let me leave on this note...


    The first step is highering people you trust.
     
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  3. PS9

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    Seems like a risk you'll have to take as you're dealing with cash so you'll get taken at some point, probably sooner rather than later if we're being honest. I'm assuming you're going to re-sell the items at a higher price.

    Either way the guy can steal your money. He goes pickup an item for $200, offers the guy $150, pockets the $50 difference. Collateral won't work, why? Someone doing an under the table job for you picking up stuff from Craigslist likely doesn't have collateral (yeah, I know it sounds horrible, but it's the honest truth.) - Ask for a credit card, you'll probably get a legit one... that is run up to the limit. Even if you did charge the card, he's going to report it stolen.

    If you're going to do it, like noreturn said, hire someone you trust. Because even if you gave it to a relative they could take it because at the end of the day if you go to small claims court, how do you prove you gave the person cash? Signed form? They'll sign their name differently.

    Personally I wouldn't do it, unless you're going to buy the things yourself or come to terms with the risk that someone can, and eventually will, walk off with your money.
     
  4. sigma

    sigma
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    The best way is avoid to give the driver money. If you are buying from the same guy, then you shall talk to the seller pay weekly or monthly, or use other paying method instead of cash
     
  5. Business Attorney

    Business Attorney
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    There is no sure-fire way. Hire someone who appears trustworthy and do a background check. Have the person sign a receipt for the exact amount you give him and have him get a receipt for anything he pays out. let him see you are being methodical and that any shortage will be immediately noticed.
     
  6. mrtuyen

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    i am a driver man like you say but i've never take away the money. But i think you sould have them deposit a money in your company to make sure they'll not take away the money or you should ask the seller to take your payment after awhile.
     

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