Supplier Debt Issue

dave74

I don't know where to begin. I own a small business that has been affected greatly by the recession. As a result I have fallen behind on payments with Suppliers.

One supplier in particular is demanding full payment immediately. I have been paying him a monthly cheque since march and have paid at least half of what I owed him. I got a letter today and he is demanding payment in full within the next 7 days or he''ll bring me to court.

We have offered the supplier the goods back. They are in perfect condition and haven't sold at all. It says on the invoices that the goods are not legally ours till they are fully paid.

I wish to find out if they can refuse to take the goods back.

drunkmonkey

Interesting question about giving the stock back, the supplier is probably worried your struggling and want their cash, I'm not sure if they could take you to court when your paying back what you owe in bits every week.
If all the money isn't there all the judge could do was make an installment plan and you'd still be in the same situation paying back a bit at a time.
Have you asked will they take the stock back? Even some of it, I know suppliers even though the say the own the stock until they pay for it they won't take it back. Wonder who the judge would deem to own the stock and thus have to pay for it.
Best of luck struggling through it been close to the wire myself a few times, it's not fun.
I think it makes a difference if your a LTD or a Sole Trader.

aacs

Although the supplier won't accept his unpaid goods back but court judgement can put him in a fix for it.

In your case judge might like making some payment arrangement plan but still you can put your request of returning the goods back before him.