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View Full Version : Corporate client in trouble what would you do ?


onboard2
03-17-2003, 01:02 PM
I,m subing out my fertilization for this year. I have one corporate client whose stock is trading at an all time low. My problem is I would like to make sure I get paid . How should I go about this without going out on a limb and get stuck with the expense of a
non -paying customer. Should I bill for my service in advance ?


Thanks

GraZZmaZter
03-18-2003, 07:40 AM
One word:

CONTRACT

Lombardi
03-18-2003, 11:22 AM
If the company files bankruptcy, a contract does not guarantee payment. You would be classified as an unsecured creditor and they are the very last to get paid, if at all. Plus it takes months and sometimes years for the courts to settle. I would speak with one of their officers and explain your concerns and see what they say.

GraZZmaZter
03-18-2003, 04:21 PM
Lombardi

You just talked yourself in a circle. So are they not guaranteed, or are they only guaranteed after a few months or years????

MacLawnCo
03-18-2003, 04:27 PM
they are technicly guaranteed, but in actuallity, you will get nothing. Once the company liquidates their assets, the govt has first dibs to collect what they are owed (sales taxes, social security, etc), then comes the secured lendors who will likely take the equipment that they wrote the loan for. After all that, if there is any money left, then the other creditors (you included) will get your chance to get what you can. Usually those at the bottom of the chain get little to nothing.

osc
03-18-2003, 07:51 PM
What does this have to do with the fert? Are you worried that you will pay a sub and then not get paid yourself? If so, then do that account yourself, atleast you will only have the cost of fert on the line and not additional labor.
Or, write up some big fert plan with a discount for paying up front. Or, just put them on c.o.d.
There would be nothing wrong with making an appointment with the P.M. or Buyer to discuss your concerns. Tell him/her you are a little guy and you can't carry a loss. Offer a discount for early payment. Sometimes 1/2 percent if paid in ten days will get you an early check.
Are you sure they are in trouble? Low stock price doesn't mean they will go bankrupt necessarily.
Fert apps are spaced out over the season more than 30 days apart usually. Theoretically, you shouldn't get hung for more than one app because you would see your own aging report past 30 days and put them on cod.
If they are in trouble they will likely cut fert out of the budget anyway.

lsylvain
03-18-2003, 09:56 PM
I wouldn't worry about the stock price so much as far as their ability to pay. The way the market is right now with the war and such it doesn't mean they will go out of biz.

I would get copies of their financials and look over them. Are they meeting current debt and so on.

I agree with osc, if you do get hung out it wouldn't be for more than 1 app.

Lawn DOG
03-20-2003, 06:18 PM
If it smells like trouble. Why even take the account. If they file chapter 11 you don't get jack.
I am going threw this with Burger King. They filed for bankruptcy protection and I am left holding the bag. Never saw this one coming. They owe me a couple of thousand.:realmad: