Owed money from co. with cash flow issues, what to do?

[bennyboydurham]

I create digital downloadable media, sold through a variety of resellers. One of them, a large UK based co. has been dragging their heels with payment. Original terms weren't that great in the first place (around 75 days) but was happy to go along with it. They're now two weeks late on our royalty payment and I've just had an email from their ops guy saying that they're having some cash flow issues due to the parent company pulling out of a certain market and they're very sorry and hope to have it sorted within a week or two.

Not sure what to do, this is a fairly big company who've been around for years and this is the first product we've placed with them. I think I'd be extraordinarily unlucky to place a successful product with them and generate lots of revenue only for them to go belly up taking my £££ with it.

Do I give them some breathing space or do I push harder? We're not talking tens of thousands but we are talking thousands and whilst it wouldn't bring us down it'll be massive kick in the bks to a start up, which we are.

Any ideas?

[Grandad7184]

7 day letter of intent send by courier

The if no payment send another informing them it has been passed on to a debt company if no money has arrived

pass on to a debt company. That's how we roll in my work.

They would do the same

[jonamv8]

This ^^^

[jonamv8]

This ^^^

[Simpo Two]

Too much for Small Claims then?

[paoloh]

The guy has made contact with you and kept you in the loop.

If you go legal too soon, you may lose them in the long run.

Give them some breathing space and keep the contact going.

[POORCARDEALER]

paoloh said:

The guy has made contact with you and kept you in the loop.

If you go legal too soon, you may lose them in the long run.

Give them some breathing space and keep the contact going.

I agree with this, try and work with them but tell them you expect honesty...I would do some homework first and try and ascertain that they are not about to pre pack or go into administration etc before offering to work with them.