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Maintenance Contractor breaking the law?

TINKERBELL
TINKERBELL Posts: 53 Forumite
Part of the Furniture Combo Breaker
edited 9 March 2018 at 8:41PM in Small biz MoneySaving
We run a small business. One of our customers, a very large maintenance company, has emailed all their suppliers telling them that they will deduct 2.5% from every Invoice submitted to them. This is despite their suppliers holding Purchase Orders from the aforementioned company valid for a year, confirming a set price. I realise this is against the law but do not know how to handle it? Has anyone else experienced this?

Comments

  • Percy1983
    Percy1983 Posts: 5,244 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    In simple terms they are not paying for services products received at the agreed price (Purchase orders should form a contract) then chase them for the outstanding balance on each short payment, if they refuse stop supplying products/services as they are in breach of the agreement which then means you don't have to complete your side of the bargain.

    From there you can negotiate a lower price for cut down services/products or walk away.
    Have my first business premises (+4th business) 01/11/2017
    Quit day job to run 3 businesses 08/02/2017
    Started third business 25/06/2016
    Son born 13/09/2015
    Started a second business 03/08/2013
    Officially the owner of my own business since 13/01/2012
  • phill99
    phill99 Posts: 9,092 Forumite
    Part of the Furniture 1,000 Posts
    Simple: start a claim in the Small Claims Court for the 2.5%. See where it gets them.


    TBH I think you are best off without these kind of customers.
    Eat vegetables and fear no creditors, rather than eat duck and hide.
  • paddyrg
    paddyrg Posts: 13,543 Forumite
    Yep, it's filthy practice when a big company says "oh yeah, we know we got you to agree to 90-day terms instead of 30, but now we are going to discount everything by 3% across the board - fight us".

    A large high street shop does this routinely.
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