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Yes. As hard and unfair as it sounds, if you have finite resources and too many expenses, at some point you have to take drastic decisions. The big difference

Yes. As hard and unfair as it sounds, if you have finite resources and too many expenses, at some point you have to take drastic decisions. The big difference is in how you handle them "in a couple of weeks". You can totally screw them, or you can honor their credits.

ido 4y ago
How do you know you will actually have money in a couple weeks?
- javawizard 4y ago
  If you wouldn't have money in a couple of weeks, how does this make any difference?
  - hef19898 4y ago
    Delaying bacruptcy can, and has, landed people in jail.
  - ido 4y ago
    It may not to you, but your unpaid vendors would know to not wait on you hoping you'll pay up at the end & try to figure out a backup. If I was providing services to a company I'd much prefer they tell me they're unable to pay ASAP then just delay as much as they can and then not pay at the end.
hef19898 4y ago
Doing so ruins a companies financial crediability, and it is opening thr door for your vendors to sue you for delaying bancruptcy. You can ask for drlayed payments as part of restructuring, unilaterally stopping payment is a sure way to disaster.
ehnto 4y ago
Just keep them in the loop so you don't end up with a nasty surprise of your own. I have dealt with this scenario from both sides, and suppliers are often pretty well situated to ride out a few missed payments. But by the nature of your situation, you are in no position to be shopping around for a new service should they cut you off for non-payment. Keep people on your side by being communicative as early as possible.
wirrbel 4y ago
Either you default or you honor your credit and potentially rebalance credit. I your business was operated responsibly you shouldn’t be in a situation where you stop all payments to „sort out your business numbers“
- zomglings 4y ago
  Whether or not your business was operated responsibly does not affect your current best marginal decision. Assuming you want your business to survive, this may be to take the author's advice.
  - wirrbel 4y ago
    Ahem. You also cannot delay filing of insolvency because the law decides which marginal decision are allowed and which aren’t.
cyrilgrislain 4y ago
Yep. and 2 weeks delay in payment is not 'totally screwing' anybody :-)

ido 4y ago

How do you know you will actually have money in a couple weeks?

javawizard 4y ago
If you wouldn't have money in a couple of weeks, how does this make any difference?
- hef19898 4y ago
  Delaying bacruptcy can, and has, landed people in jail.
- ido 4y ago
  It may not to you, but your unpaid vendors would know to not wait on you hoping you'll pay up at the end & try to figure out a backup. If I was providing services to a company I'd much prefer they tell me they're unable to pay ASAP then just delay as much as they can and then not pay at the end.

hef19898 4y ago

Doing so ruins a companies financial crediability, and it is opening thr door for your vendors to sue you for delaying bancruptcy. You can ask for drlayed payments as part of restructuring, unilaterally stopping payment is a sure way to disaster.

ehnto 4y ago

Just keep them in the loop so you don't end up with a nasty surprise of your own. I have dealt with this scenario from both sides, and suppliers are often pretty well situated to ride out a few missed payments. But by the nature of your situation, you are in no position to be shopping around for a new service should they cut you off for non-payment. Keep people on your side by being communicative as early as possible.

wirrbel 4y ago

Either you default or you honor your credit and potentially rebalance credit. I your business was operated responsibly you shouldn’t be in a situation where you stop all payments to „sort out your business numbers“

zomglings 4y ago
Whether or not your business was operated responsibly does not affect your current best marginal decision. Assuming you want your business to survive, this may be to take the author's advice.
- wirrbel 4y ago
  Ahem. You also cannot delay filing of insolvency because the law decides which marginal decision are allowed and which aren’t.

cyrilgrislain 4y ago

Yep. and 2 weeks delay in payment is not 'totally screwing' anybody :-)