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    • By TINKERBELL 9th Mar 18, 6:45 PM
    • 49Posts
    • 1Thanks
    Maintenance Contractor breaking the law?
    • #1
    • 9th Mar 18, 6:45 PM
    Maintenance Contractor breaking the law? 9th Mar 18 at 6:45 PM
    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?
    Last edited by TINKERBELL; 09-03-2018 at 8:41 PM. Reason: Posted in the wrong section
Page 1
    • Percy1983
    • By Percy1983 10th Mar 18, 9:22 PM
    • 4,973 Posts
    • 7,820 Thanks
    • #2
    • 10th Mar 18, 9:22 PM
    • #2
    • 10th Mar 18, 9:22 PM
    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
    • By phill99 12th Mar 18, 5:15 PM
    • 8,096 Posts
    • 7,320 Thanks
    • #3
    • 12th Mar 18, 5:15 PM
    • #3
    • 12th Mar 18, 5:15 PM
    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
    • By paddyrg 14th Mar 18, 6:36 PM
    • 13,112 Posts
    • 11,187 Thanks
    • #4
    • 14th Mar 18, 6:36 PM
    • #4
    • 14th Mar 18, 6:36 PM
    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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