Customer Refusing to pay

[Newbie22]

I have a customer who is refusing to pay for an invoice.

Basically, I have a purchase order given to me from the "Company A" who are a big and well known company in their industry.

They gave us a purchase order to produce a product for them, so with the commitment of a PO, we purchased the material, developed the machine, and started to produce the product, this involved a labour cost also, as we pay our staff weekly.

This product is no use to us, or to anyone as it is a complete one off specialist job...so we have been left with the burden of the costs etc..

I have tried to negotiate with them, can anyone make any suggestions, the company is based in Argentina, and I think at this time, I ready to threaten legal action against them.

Any help would be really appreciated!?

 

[Charlie B ACS]

Have they taken the goods, or cancelled the order before delivery?

Does the contract stipulate which country's laws apply?

 

[Dilly Delores]

Have you dealt with them before or know of anyone that has? Did you do a credit check with them? Sadly I think unless you have a signed agreement with them and as Charlie has said have checked the contract I fear you may find it will cost you more to try and get the money than it would to write if off as a loss..

Different business to yourselves but I NEVER buy any goods to make the bits I have orders for until a deposit has been paid and I make sure the deposit covers the cost prices of the bits needed just to be on the safe side. Especially if I've never dealt with a company/customer before.

Good luck