Avoiding businesses going bump on you

In that case you’re extremely lucky that there are so many naive ‘businessmen’ around on here willing to give credit facilities to a recently formed limited company with no credit status.

Posted under Courier Financial Issues, Late Payment

Posted by Alec at 9:00 am, September 15, 2007

10 Comments so far

  1. “Would I have been a safer bet had I stayed a sole trader?????…”

    Yes, because you’d be personally liable for any debts your business incurred. ‘Your home could be at risk….’ etc. For all anyone knows your new limited company could have £100,000k of outstanding debts and is owed £500,000k by Almost Bankrupt Ltd. In 2 weeks time, when they drop the ‘Almost’ from their name, you could legally walk away from your £100k debts without any comeback. Therefore you’re a bad credit risk, like many limited companies. It makes no difference whether you’re trading from your home address or trading from a penthouse office suite in Canary Wharf.

    I wasn’t passing comment on your creditworthiness though, or that of your limited company. I was pointing out that, in general, people on here give credit far to readily. Most of us would be considered a bad credit risk by any well informed supplier.

    I don’t understand the comment about targets.

  2. I’ve not written anything remotely derogatory or inflammatory. If you choose to read it like that then that’s not my problem.

    Most people or companies that join ‘Network’ go out of business within 3 years, in fact over 50% of small businesses go out of business within 2 years. Those that are limited companies almost invariably leave a trail of debts behind them when they go under. recently formed small businesses, and recently formed limited companies in particular, are a very bad credit risk.

    Anyone supplying services on credit for businesses with no credit status shouldn’t be surprised if they lose their money.

    I’ve been asked for credit card payments up front by about 5 ‘Network’ members – all of them successful , well established businesses who understand the risks of giving credit to every Tom, Dick & Harry that asks for it. If more people did it there’d be a lot less problems on here.

  3. As I said James, we’ve been asked for payment by credit card up front by several ‘Network’ members. I’ve no problem with that at all and I have the company credit card details available at all times for that very reason.

  4. “Last week he did a puplic credit check on a company and then told everybody the details on here”

    You’re a liar.

  5. Not to mention being a dickhead.

    And as I’ve said before most of our work is paid for in advance BY CREDIT CARD. Just because you still seem to be living in the 1970s don’t preach that everyone else should as well.

  6. And so what if I had done a credit check on a company and posted the details on here? It’s only public domain information anyway, everyone has access to it.

    Your company’s Annual Return is overdue by the way.

  7. I’ve not credit-checked anyone.

  8. And you’re a big-mouthed ignorant knob. Your point?

  9. What the fuck are you ranting on about now? I’ve not put your details anywhere; they’re on the bottom of every piece of drivel you’ve posted on here.

  10. Jeremy, I can tell that you’re eager to rush into the playground to fight me and prove what a big boy you are, but before you do so I suggest that you show your teacher (or your nurse?) this thread and ask them to explain the bits that you obviously don’t understand.

    I’m sure they’ll be able to point out that it was actually YOU that started ‘this crap’ with your unjustified and abusive attack on ME.

    From your response you obviously believe that I’ve made some sort of attack on your honesty or integrity: READ WHAT I ACTUALLY WROTE or get an adult to read it for you. I was actually commenting on the naivety of most ‘Network’ members in providing large amounts of credit to small businesses with little or no credit standing, often just because the person they’re dealing ‘seems like a nice bloke’. Whether they’re dealing with me, you, MUI Logistics or whoever they shouldn’t be providing credit facilities to MOST ‘Network’ MEMBERS unless they can afford to lose what they’re owed.

    This thread is actually about Mark Currier, someone that, until six months or so ago, I would have been happy to say was a stand-up, honest sort of person that anyone should be happy doing business with. The history of ‘Network’ is littered with people and companies like this that many other members have trusted implicitly but have gone out of business leaving huge debts behind them and forcing other members out of business.

    Simon, who has as much business experience as you and I put together, made a perfectly valid suggestion which would ease the cash flow and bad debt problems experienced by many ‘Network’ members and you dismissed it disparagingly without any valid reason and without providing any alternative suggestion. Perhaps you really believe that allowing bad debts to accrue and then threatening to drive over the debtors rose-beds is a more viable solution to the problem?

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