Helpp!! Urgent Help Needed

[MMEngServ]

Hey Guys,

Still new and learning how running your own business can sometimes be a pain!

I need urgent help, I agreed with a customer prior to an order of £20,000 worth of electric motors that the payment structure would be:

25% on a pro-forma
25% prior to despatch
50% on 30 days NET

i received 25% on pro-forma, however the manufacturer sent the motors direct to the customer before they paid me 25% prior to desptach.

They are claiming that they dont have the money to pay me until next wednesday, and i am afraid that by then they may use the motors and pass them onto their customer.

I have a TITLE OF GOODS clause on my invoices, which states 'TITLE OF GOODS CANNOT BE PASSED UNTIL INVOICE PAID IN FULL' which they have not paid.

What is the best course of action? can i get those motors back? what substance does the 'title of goods clause' actually have??

I am thinking of having the motors picked up again, as they were delivered 2 days ago, and holdin them until they pay the 25%, but then im worried, even if they pay that, what if they dont pay the remainder 50% on 30 days.

Can i pick up the motors and just demand 75% payment from the fear of not getting paid at all?

Thank you for all help in advance

 

[Christine Hough]

I think there is a judgment call here. How much do you know about them?
Do you think you will get your money next Wednesday?

You ask what is the probability of getting the remaining 50%.
Impossible for us to tell from what you have told us.

Try finding out about the company and see if it has trading difficulties or CCJs.
Even get to hear what people say about them locally.
How long have they been around?

Are they likely to want a long term relationship with you?
Who used to supply them before they came to you?
Why did they jump?

Given their inability to meet their initial contractual payment schedule I would be asking those sorts of questions before deciding what to do.

I do understand your concerns, Perhaps you should also post this in legal.

 

[OldWelshGuy]

SPEAK TO THEM.

On the face of it though I would not be surprised to see that they left their last supplier due to non payment.

Honestly you need to speak to them. Why can't they pay until next Wednesday? what reason have they given?

What makes you think they will find the balance 3 weeks after they struggled to pay 25% of the amount?

This is a judgement call as stated above, but I wouold talk to them. How far away are they?

 

[ORDERED WEB]

10K is a lot of credit to give to a new customer with no proven track record for 1 month

Whist I agree you need to speak to them, Get them credit checked too before making your decision. There are some guys on here that can do that for you pronto

 

[KateCB]

Good advice here, however I would also say that in future for large order, credit check FIRST, and then offer 50% with order, 25% on dispatch and 25% on 30 days - this way you should have at least covered your costs with the first payment......so if the worst does come to the worst, at least you have only lost profit, not capital.