A fresh order should not blur the status of old arrears. Define the terms, payment allocation and credit exposure for new work while the earlier account is addressed separately.
Corporate Recovery Partners
01 / 06
A new job arrives before the old invoice is paid
A maintenance contractor is offered more work by a customer with overdue invoices. The customer suggests that keeping the relationship active will make everything easier to settle. The contractor needs a clear decision about the new job rather than assuming future revenue will automatically resolve the existing balance.
Confirm invoices, receipts, credits and specific disputes. Identify any existing repayment arrangement or formal action. The new-order discussion should start from an accurate balance, not an outdated statement.
Keep the earlier debt records intact. Do not issue a credit or merge balances merely to make the customer account look clear unless the treatment is properly agreed and advised.
Check scope, price, delivery requirements and cash needed before payment. Consider whether the customer's ability and willingness to pay have been assessed using current evidence.
Business.gov.au quoting guidance recommends clear scope and payment terms. Record any deposit or staged-payment arrangement properly and check applicable requirements rather than relying on a general promise to catch up.
Ask what each proposed payment covers and document the arrangement where appropriate. Obtain advice if allocation, set-off or settlement conditions could affect the old claim.
Do not assume a new deposit can be applied to old arrears while the new work remains unfunded. The business needs to understand both its delivery obligations and the account consequences.
Identify who can approve the new commitment and the maximum exposure the business can support. Keep sales and accounts aligned so one team does not promise work while another believes supply is paused.
If the terms are not workable, obtain advice before accepting or changing obligations. Continuing the relationship should be a deliberate commercial choice, not a reward for another vague assurance about the past.
