| Posted: 07 May 2010 18:06 | |
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We have a customer which we have decided that we no longer wish to do business with.
They have some inventory that has been here over 1 year and once we shipped it they want 180 day terms.
If we tell them to come get their molds can they sue us for putting them out of business. We would want to be paid in full for all old invoices and current inventory before they can pick up their tools. Your advice is greatly appreciated.
Todd Nicolay
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| Posted: 07 May 2010 18:26 | |
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What does your Purchase Order say???? Call your attorney and file a lean against the tooling.
Kelly
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| Posted: 07 May 2010 19:06 | |
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Requesting they pick up their tools or transfer them to another molder does not consitute putting them out of business. This is a valid business request, and I would not release the tools until you have received payment for the related inventory and receivables.
Joy Hertlein
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| Posted: 07 May 2010 19:11 | |
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One year sitting on inventory is way past reasonable.
I would insist on COD for the inventory and not release tooling until the obligations are satisfied. We have done this before.
Mike Dorsey
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| Posted: 07 May 2010 22:06 | |
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I agree with Kelly, you should file a lean or enter a judgement if you are concerned that you will not get payment on terms or otherwise. Witholding the tools is appropriate and common practice...but may be of little comfort when cash is what you really want. Have you checked their D&B?
Eric Paules
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| Posted: 07 May 2010 22:41 | |
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We have done this a couple of times and whenever we end a customer relationship we demand that all obligations have been paid before we release the molds. We have even moved the molds offsite in one situation so that they could not show up off hours and get their molds.
Craig Carrel
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