Who Pays the bill?

Discussion in 'Business Operations' started by eggy, Aug 23, 2001.

  1. eggy

    eggy LawnSite Bronze Member
    Messages: 1,085

    Well one of my commercial customers has been late in paying all year..I called today to see what the hold up is this time......welll I was informed that this branch has been sold....so who pays the bill the old company or the new one???? And one tip for any Indiana people....watch out for a nursing home callede Community Care Center....the worst Commercial account when it comes to paying I have ever dealt with in my entire lawn buisness time....and commercial makes up 60% of my buisness so I have heard a lot of bs.....
  2. Vandora Lawn & Landscape

    Vandora Lawn & Landscape LawnSite Senior Member
    Messages: 386

    As far as I know, when a company acquires another company they acquire all the debts of old one, so in theory, the new company should pay.
  3. brucec32

    brucec32 LawnSite Platinum Member
    Messages: 4,403

    In some instances a company's assets only can be purchased. That means the liabilities do not transfer. You'd have to find out what kind of deal they made.

    This is a big reason why I don't do commercial jobs. They pay really late and you can get burned. A guy my family knows had a pretty big company and went out of business because a single big account bailed on him.

    I would suggest in the future that you bite the bullet and drop people who don't pay on time before the bill gets too big. You still have the right to collect in court for what you're owed. I would make my terms clear up front......no payeee....no moweeee. Anyone who demands more lax terms is obviouslly cash poor, waiting to rip you off by not paying at the end of the year, or character-deficient....industry "norms" to the contrary. Build your foundation on sand or be strong and go after quality clients.
  4. Guido

    Guido LawnSite Silver Member
    Messages: 2,087

    I would have your lawyer write a letter to the current owner and send it certified mail or serve it yourself. That should help get to the bottom of who is liable to pay. Of course there will be finger pointing up front, but either the current owner or the old owner will eventually come up with some kind of contract or proof as to why they don't owe you the money. Once you get that you can pin it on the one who owes you.

    So I assume you don't work for the new owner?

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