Consequences of payment failure between retailers and suppliers into supply chain

Adebayo

New member
Hi Guys,

I'm entrepreneur and I'd like to understand and list the issues because of payment failure into supply chain.
What Consequences of payment failure between retailers and suppliers into the supply chain?
Does payment failure into the supply chain can lead a small or mid-size company to bankruptcy?

Looking forward to hearing from you guys

Reagards,

Adebayo
 

Corzhens

Member
It depends on the size of the failed payment and also on the size of the company. When I had a retailing business of computer supplies, I fully understood that not all clients would pay me. And since there is no such thing as 100% payment so I have set aside an allowance for that payment that wouldn’t be fulfilled. The big headache was actually the collections where payments were always delayed by a month or 2 that I had to borrow money for the overhead and operational expenses. But if maybe 5 clients would not pay their balance then my company would fold up.
 
Top