late paying customer

[heavy hauler]

Hey all

Need some advice on this. I have a customer that was bought out and since the transaction took place they have gone from 30 days to 60 days then to 90 and now were heading for 150 days. The problem is starting to worry me a bit. They're not returning phone calls and last month they didn't even send a payment. Now I do have a piece of their equipment in my yard. They asked me to keep it as they didn't have a location for it yet and would cost them more to return it to their yard. And now I don't think I would move it anywhere because they owe $10,000 dollars.

Any advice? Collections? Invoices are too old for factoring. Not sure what to do - don't want to be nasty but they are not playing very nice and kicking them out of the sand box is an option but that's not how I like to do things.

Thanks in advance

 

[chica123]

I don't think that when you have invoices that are 150 days old and worth $10 000, you should worry about playing nasty. It looks like they already started. ( Don't want this to be misinterpreted...I mean start using all tools available to you within legal means to recover your amount owing! Don't wait for them to answer the phone anymore.)

 

[jsprat]

Good morning.

You say you have a customer that was "bought out." Right off the top you have a brand new customer, with no credit. As soon as the corporate entity changed everything changed. The same people may be there, the name may even be the same however for the purpose of business this is a brand new unqualified account.

I would send a registered demand letter. Attach a copy of the original invoice, with a current invoice showing the interest charges to date. The new owners may wish to clean it up quickly so not to alienate any vendors. Their response on the invoice may determine what you do or can do with that piece of equipment, but for now I wouldn't even mention it.

J

 

[heavy hauler]

Good morning.

You say you have a customer that was "bought out." Right off the top you have a brand new customer, with no credit. As soon as the corporate entity changed everything changed. The same people may be there, the name may even be the same however for the purpose of business this is a brand new unqualified account.

I would send a registered demand letter. Attach a copy of the original invoice, with a current invoice showing the interest charges to date. The new owners may wish to clean it up quickly so not to alienate any vendors. Their response on the invoice may determine what you do or can do with that piece of equipment, but for now I wouldn't even mention it.

J

thanks for the input thinking of doing registered mail

 

[phantom 309]

Hey all

Now I do have a piece of their equipment in my yard. They asked me to keep it as they didn't have a location for it yet and would cost them more to return it to their yard.

I would ask how long have you been storing their piece of equipment, have you been charging storage fees?
The warehousemanliens act will be in your favour, unless the piece of equipment is not worth the effort,.but an unpaid invoice for $10,000 worth of storage ($70.00 per day) would give you some legal leverage.
JM2C

Nick

 

[heavy hauler]

I would ask how long have you been storing their piece of equipment, have you been charging storage fees?
The warehousemanliens act will be in your favour, unless the piece of equipment is not worth the effort,.but an unpaid invoice for $10,000 worth of storage ($70.00 per day) would give you some legal leverage.
JM2C

Nick

End of April will be 60 days.

$100,000 machine - not new but rare. My accounts manager spoke with the owner on Friday and they said they're just waiting for a cheque. I will hit them for storage fees after they pay the outstanding balence. Thanks for your input

 

[Maggs]

Heavy Hauler - we were involved in a similar situation. We warehouse and distribute goods for a client, they have been recently bought out buy another firm. We had to sign off on a waiver acknowledging the purchase. Before we signed we forwarded the documents to our company lawyer who then advised if we did sign the documents as they read, it would give the purchaser the right to remove all goods without paying any outstanding balances. So we sent them back asking them to re-write....even though the purchaser has no intention of removing their goods and business is as usual, it was a protection item which they understood.

 

[heavy hauler]

Heavy Hauler - we were involved in a similar situation. We warehouse and distribute goods for a client, they have been recently bought out buy another firm. We had to sign off on a waiver acknowledging the purchase. Before we signed we forwarded the documents to our company lawyer who then advised if we did sign the documents as they read, it would give the purchaser the right to remove all goods without paying any outstanding balances. So we sent them back asking them to re-write....even though the purchaser has no intention of removing their goods and business is as usual, it was a protection item which they understood.

Thanks for your input Maggs. Well they sent me a cheque for the rest of Dec 2011. But were still 5 months behind. They did say they will pay the rest of the outstanding invoices there still waiting for money. I haven't said anything about storage fees - I'd like to get the rest of what they owe me first.