Keeping goods in lieu of payment / part-payment

[Fun Bus]

What is the term for when a business holds goods in lieu of payment?

I nor anyone else in the office can think of it!

[papabear]

Pro forma

HTH

[singlecoil]

Question doesn't make sense.

[Soovy]

Fun Bus said:

What is the term for when a business holds goods in lieu of payment?

I nor anyone else in the office can think of it!

Lien

[Fun Bus]

That's the one! Thanks Soovy.

[mattdaniels]

Lien is the term. I witnessed a regional airport do this to some aircraft due to unpaid fuel bills from a flying school. All horribly messy due to the flying school not owning the aircraft.

Edited by mattdaniels on Friday 12th February 14:55

[singlecoil]

Fun Bus said:

What is the term for when a business holds goods in lieu of payment?

I nor anyone else in the office can think of it!

So these are goods that belong to the business that hasn't paid? Or are they goods that have been ordered and not yet delivered, or goods that have been ordered, and paid for, but are being held because something else hasn't been paid for?

[sgrimshaw]

Singlecoil,

It's frequently not even against the goods or services actually supplied.

Eg.

A garage will not usually release your car until you have paid the repair bill.

The bill might be only £100, the car worth £100,000.

The garage has a lien on your property against the debt you owe them.

Happens all over the place.

If you don't pay, they can (eventually) sell your property to recover their debt.

[singlecoil]

sgrimshaw said:

Singlecoil,

It's frequently not even against the goods or services actually supplied.

Eg.

A garage will not usually release your car until you have paid the repair bill.

The bill might be only £100, the car worth £100,000.

The garage has a lien on your property against the debt you owe them.

Happens all over the place.

If you don't pay, they can (eventually) sell your property to recover their debt.

Thanks, actually I know what a lien is (I actually run a little 'garage' of my own), but that wasn't what I asked.