Payment holiday!

Dave Campbell
Finance Manager
THE FO
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A Company has just sent a letter to a client. The Company made a £4.3m profit last year. The client would love to have half of that as turnover. In the letter they inform us that they have our invoices, but won't be paying them before September as they are in the middle of an eight week payment holiday. A payment "holiday".  I can imagine pound coins slapping on the suntan lotion. Tumbleweed blowing around the finance office as everybody wanders off to Ibiza.

A payment holiday. Just around their year end. Hope they've provided for the additional costs of late payment demands.

 

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By tom123
19th Aug 2017 19:06

Are they a PLC, and thus not too much of a credit risk?

I expect they would manage to find someone to open the letter from the small claims court..

Some of my best customers put themselves on '75' day terms - but the funds arrive without fail on the 75th day from the invoice date.

I actually prefer them to the chancers who 'agreed' to 30 days and end up paying 60 days EOM plus a few more days for window dressing.,

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