Have a small engineering company. After Christmas we had a major drop in sales and were unable to keep up with monthly supplier invoices. With some drastic cut in expenditure (mainly suspending both directors salaries for 6 months), we are well on the way to correcting things. At this point, some of the smaller suppliers have been paid off, the larger ones, we have payment plans with and most are happy.
One supplier that we have a payment plan called me up this afternoon saying that there credit insurer 'Atradius' is putting added pressure and will not accept the fact that we have agreed in principle to pay 3k this month. The supplier in question says that the insurer Atradius wants us to give post dated cheques for the agreed amounts in order to tie us to the payments.
I suspect something else is going on here, the supplier has said that while they are happy with the agreements and payment to date (we have met every payment that was agreed) but they are now being forced into demanding the post dated cheques. They supplier also says that is we do not comply then the insurer will force them to take legal action and put in a claim for the amount in question.
Does anyone know more about creditor insurance? Its seems odd to me that an insurer would look for the insured to make a claim. As it stands the outstanding amount should be paid off in a couple of months and possibly before the matter would end up in court.
I think there are other reasons that my supplier is looking for post dated cheques and maybe they are in more trouble than me!
One supplier that we have a payment plan called me up this afternoon saying that there credit insurer 'Atradius' is putting added pressure and will not accept the fact that we have agreed in principle to pay 3k this month. The supplier in question says that the insurer Atradius wants us to give post dated cheques for the agreed amounts in order to tie us to the payments.
I suspect something else is going on here, the supplier has said that while they are happy with the agreements and payment to date (we have met every payment that was agreed) but they are now being forced into demanding the post dated cheques. They supplier also says that is we do not comply then the insurer will force them to take legal action and put in a claim for the amount in question.
Does anyone know more about creditor insurance? Its seems odd to me that an insurer would look for the insured to make a claim. As it stands the outstanding amount should be paid off in a couple of months and possibly before the matter would end up in court.
I think there are other reasons that my supplier is looking for post dated cheques and maybe they are in more trouble than me!