Legal Advise

[tsetse]

Dear Bros and Sis,

Currently i have a company doing some engineering parts, so the credit terms im giving my customer 30days credit terms, things were pretty alright till this recent order where they ramped up their order 6 times more than normal, its been 40 plus days and till no one has gotten back to me on the payment yet.

Due to the high cost of the products, now my supplier is chasing for payment so I LL have to pay up first. If i were to take legal action, would the purchase order serve as a proper agreement???

[CFC]

Dear Bros and Sis,

Currently i have a company doing some engineering parts, so the credit terms im giving my customer 30days credit terms, things were pretty alright till this recent order where they ramped up their order 6 times more than normal, its been 40 plus days and till no one has gotten back to me on the payment yet.

Due to the high cost of the products, now my supplier is chasing for payment so I LL have to pay up first. If i were to take legal action, would the purchase order serve as a proper agreement???

did u send ur customer any quotation before starting to delivery the order?if so did ur customer sign and chop and fax/email u back?

if u did have a quotation fax/email to them,did u include the payment term in the quotation?

if so,u're covered under the law as far as i know & as long as they acknowledge ur quotation the agreed to ur T&C then u're quite safe.hope this helps

[tsetse]

did u send ur customer any quotation before starting to delivery the order?if so did ur customer sign and chop and fax/email u back?

if u did have a quotation fax/email to them,did u include the payment term in the quotation?

if so,u're covered under the law as far as i know & as long as they acknowledge ur quotation the agreed to ur T&C then u're quite safe.hope this helps

Yes i did send them an official quote and all correspondence were all via emails. Btw the boss "promised" payment this thursday. Hopefully they pay up.....

Thanks for the advise bro!

[CFC]

Yes i did send them an official quote and all correspondence were all via emails. Btw the boss "promised" payment this thursday. Hopefully they pay up.....

Thanks for the advise bro!

good luck bro,just remember to keep all the correspnd between u and them just in case they decided to sell roti prata.all the black and white will help u and speed up ur case if it ends in a lawsuit.cheers bro.

[H2F]

Ah, no legal opinion bro, but from business point of view, I would give benefit of doubt and credit term leeway for a customer that increased their order 500% (as long as no suspicious communique, unusual change of procedure, etc)... $0.02!

[tsetse]

good luck bro,just remember to keep all the correspnd between u and them just in case they decided to sell roti prata.all the black and white will help u and speed up ur case if it ends in a lawsuit.cheers bro.

Thanks alot for your advise bro!

Ah, no legal opinion bro, but from business point of view, I would give benefit of doubt and credit term leeway for a customer that increased their order 500% (as long as no suspicious communique, unusual change of procedure, etc)... $0.02!

Cos normally they pay up before the 30 days is up, this time round no sound no picture, call dun pick up, pick up liao give some funny excuses...thats what got me worried...sighs...

Anyways thks for your advise too!

[kenlinliu1419]

One of the most important documents that should be signed by the customer is the delivery note or invoice. This proves that they accepted delivery of goods.

It would also be good if that signed document also contained all the terms and condition of the sale.

[Tech_wizard001]

Running a business is never easy, usually you should try the soft approach talk to the people that gave you the order, easier for them to talk to their accounts department.

Normal procedure their accounts would say they did not receive your invoice and would ask you to prepare the CTC - Certified True copy for the to process payment which will take at least another week depending on their payment cycle.

Be patient and be polite as you would not want to offend the people giving you business.

Cheers.

[clokwerk oranje]

spend a little bit of money and get professional legal advice...

having signed delivery documents means nothing when you find out the company receiving your product has been wound up...

similar cases has happened where customers suddenly put in a bigger than usual order, and the suppliers thinking nothing of it cos customers have been diligent paymasters, delivered the goods and the customers simply disappeared into thin air...

that's why most companies exercise due diligence when faced with such situation... normally, customer's latest tax filing is needed to calculate risk exposure... and then decide whether to fill the order...

if decided to fill the order, exposure can be further minimised with partial upfront payment (the amount can be set to cover own supply expenses)..

[tsetse]

Thanks to all bros for the advise!!

[triton]

unusual surge in business orders are usually rings alarm bells for me especially like 6 times more.

it does not matter whether you give 30 days or 60 days. the company i work for has customers who pay u after 60 days despite being granted 30 days.

even if the invoice bears the delivered intended name, address with credit terms stated and the penalty of 3% charged daily after exceeding said credit terms, you can be left to rue your losses especially if the company is PTE LTD.

any company boss can say my name and reputation is worth so much in the industry. but when the time comes to push, they can just say sue my company lor, it is a PTE LTD.

my advise to you is simple. when dealing with any company, do a company search and see who the shareholders are. if you want to take an extra step further, check out the individual credit worthiness. if they have been sued or blacklisted, you know what to do.

if you do not want to take the above precautionary step. another way is to ask for up to 50% deposit upfront for unusual surge in order patterns. at least there is some form of payment which may lower your losses if anything goes bad. if the boss say aiya, i have been prompt with my payment previously so why cannot give me goods first, i pay later. you say it is my company unwritten policy to ask for upfront deposit for unusual surge order payments. then say, if your company is not PTE LTD, then easier mah. you can even tell him that nothing is certain. last time where got flooding issues in sg within 1 month. u say nothing is certain. so in order not break a good working relationship, why not do this and that.

Dear Bros and Sis,

Currently i have a company doing some engineering parts, so the credit terms im giving my customer 30days credit terms, things were pretty alright till this recent order where they ramped up their order 6 times more than normal, its been 40 plus days and till no one has gotten back to me on the payment yet.

Due to the high cost of the products, now my supplier is chasing for payment so I LL have to pay up first. If i were to take legal action, would the purchase order serve as a proper agreement???

[shuseido]

Hey bro, hope you can get the payment soon...

[tsetse]

Thks to all bros for the kind advise!

[seiko.citizen]

Like triton mentioned, running a company search is the best option for limiting your losses. It gives you information about the company, and the those involved.

For large order, its always best to be cautious, as it may be a sign of things to come. Also if the company has a history of poor payment; that is an additional warning sign too

[tsetse]

Thanks to all bros for the advise !

Today met up with my customer and he passed me the cheque, the problem with this project is monetary value pretty high but profit margin very narrow, the financial outlay risk is very high, and due to my partner and me wanting to get future projects from this customer, we decided to take the risk....

Im praying hard the the cheque can clear by 2pm morrow. If it clears then I can keep my 320 liaoz!

Really glad to have fellow bros giving advise and helping out in this matter! Its a great forum and Im really glad that I joined this forum!

Maybe we should organise a meetup for supper or chilling out session and have a good discussion bout watches and get to know each other!

SG ROC is great! Yeah!