Our best customer cannot pay us in the short terms so we have 200 suppliers threatening legal action. Our customer is making a few payments but NOT the ones they say and NOT when they say leaving us in near panic and not being able to give our 200 suplliers RELIABLE information. Our customer is telling us we are shouting too loud!. WE FEAR THAT IF WE KEEP ON PRESSURISING THEM WE WILL LOOSE THEM BUT IF WE DO NOTHING WE WILL BE SUED BY OUR SUPPLIERS. A living night mare, I cant sleep and yes its my business! ANY advise
2006-11-04 21:31:01 · 15 answers · asked by Bengt L 1 in Family & Relationships ➔ Other - Family & Relationships
This is not the right category for your question.
2006-11-04 21:32:50 · answer #1 · answered by Caroline 5 · 0⤊ 1⤋
tell your suppliers whats going on, sell any assets you have to pay them off even using your own money if needs be. then when you get full payment for the money your owed tell your suppliers thier services are'nt needed anymore and get another tender. everybody in business benifits from the "chain" if they can't wait for payment then they are of no use to you especially when they use threats of litigation. i don't know why your losing sleep i'm sure you've all bases covered. i'm the poor slob who does all the work at minimum wage at high productivity and i've yet to see an MD sign on after a business crumbles.
2006-11-05 05:44:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You don't actually say for how long you have been owed this money but can they really be your BEST customers if they are such bad payers? I'm afraid you have to think of yourself in this instance and tell your "customer" that unless the money is paid within 7 days you will take them to the small claims court. I hope you get your money, as your credit rating will be affected by their inadequacy.
2006-11-05 05:49:07 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Your customer has problems which are now becoming yours. Do not supply and more goods/services and demand payment within 7 days. If this is not forthcoming then sue immediately - with that amount owed then you should seek an order for their bankruptcy.
From what you say, it may be too late as they are probably insolvent anyway, and you should question your own judgment for allowing them so much credit.
2006-11-05 05:45:12 · answer #4 · answered by steven b 4 · 0⤊ 0⤋
There is no loyalty in business, no matter what rhetoric people may offer. You are being used and they may just destroy your whole business.....there are always more customers.....but if you ignore your suppliers than who is going to supply you in the future. Go hard after your money, and don't allow that sort of credit unless you can cover it.
2006-11-05 05:39:51 · answer #5 · answered by PS Drummer 3 · 0⤊ 0⤋
Surely if he is having credit you must have a signed contract with him. If not then get 1 done up so you know how much money you'll be having of him and when. If you put your question in the business section you might get some better answers. Good luck.
2006-11-05 07:20:27 · answer #6 · answered by Jo 5 · 0⤊ 0⤋
in this case you need to be firm with them, but not to firm.
you and your customer need to work out parts that they can pay over a spread of a month and work it out so they can stick to it.
with this scheme you can in force a three strike rule where as if they don't pay they get a strike and give then the warnings of whats to come if it happens the third time then you move to legal action and sue because then after that you have gave them three warnings and they still haven't taken notice
hope this helps
2006-11-05 05:40:52 · answer #7 · answered by carp_la_koi 2 · 0⤊ 0⤋
Not easy. I would agree with your previous respondent who states that this customer can not be described as your best customer. A sale is not a sale until the goods/service provided has been paid for.
As for advice, speak frankly to your suppliers and explain the situation to them. As is in your case, it is not in their interest for your debt to turn into a bad debt.
Is your customer a limited company. If he is not, you can take out a legal charge out on any property he owns to the value of his debt.
Have you thought about selling his debt or the possibility of factoring it. Check out his credit rating with one of the established credit rating agencies. The information you get may help you in determining your course of action.
Do your terms and conditions of sale make reference to a retention in title to any goods supplied until they are paid for. If they don't, get a solicitor to draw you up a new set of terms and conditions immediately and fax it to all your existing customers. Ensure it is addressed to the Company Secretary, Head of Purchasing and the Company Accountant. Send a copy of your terms and conditions out with any Order Confirmation or Invoice. Better still have them printed on the reverse of those documents.
You must insist on a fixed written schedule of payments from your customer. Get a solicitor to do this and make it part of a legally binding contract. You may then use this as evidence to placate your own suppliers as well as exerting pressure on your customer.
Assuming you are able to resolve this situation, in future, as well as fixed payment terms, set a credit limit for each customer and, if you can afford it, insure it.
Do not let any customer become such a large percentage of your business turnover that payment problems could endanger your own business.
Increase your customer base to spread and lessen the risk to your own business.
I used to work for a company that supplied M&S. We had a policy that we would never let their business be more than 25% of our total turnover, which was just as well as they pulled the plug on us with no notice, simply because we refused to extend their credit and take on more of their business. Had their business represented more than 25% of our turnover they would have put extreme pressure on our company's viability.
I hope some of this helps and good luck.
2006-11-05 06:07:39 · answer #8 · answered by Chariotmender 7 · 0⤊ 0⤋
I been a director of a ltd company 30 years ..and gone in to voluntary liquidation 6 years a go..lost every thing ..I made the same mistake you are making
My advice to you is ..get your money in now what ever it takes if it means suing them do it ..but get your money in your company account immediately ..be a business minded ..you are there to run a successful business ..not to do favour's
2006-11-05 05:51:38 · answer #9 · answered by JJ 7 · 0⤊ 1⤋
How is your best customer someone who owes you £500K? I don't understand, if they actually pay they'll be your best customer, if not they're just money rinsing scumbags
2006-11-05 07:07:00 · answer #10 · answered by garfet 3 · 0⤊ 0⤋
What best customer? He's your worst customer! for God sakes jump all over him for the money or he'll bankrupt you before you know it!
2006-11-05 05:36:01 · answer #11 · answered by wheeliebin 6 · 1⤊ 0⤋