The new operator offers to pay old arrears if you keep supplying

Future work is offered as the route to an old payment

A hypothetical supplier is told that a new company operating the customer's business will deal with old arrears if supply continues. The supplier welcomes the possibility of recovery and prepares another delivery. Before committing, obtain a clear written proposal and advice on the parties and terms. An encouraging statement is not enough to establish who will pay which debt or when.

Identify both the old and proposed customer

Collect the original agreement and invoice, the new operator's details and the exact promise made. Verify the relevant legal entities rather than relying on the shared brand. Keep the old balance separate in the records. Do not assume the new operator has taken over the debt merely because it is willing to discuss it.

Check the proposed obligations clearly

Business.gov.au's contract guidance recommends clear scope and payment terms. Have the proposal reviewed for what each party would undertake, including any conditions linking future supply to old arrears. This article does not determine whether a particular promise is enforceable or transfers liability. Ask the adviser whether any wording could release an existing claim or create an unintended commitment.

Source: business.gov.au: Prepare a contract

Test the cash exposure

In the hypothetical example, another delivery could increase the supplier's cash risk before any old money arrives. Show the cost, new payment timing and the conditional arrears promise separately. Do not enter the promised recovery as certain cash. Compare the proposal with the business's capacity and other commitments, using an appropriate credit and commercial review.

Resolve the details before the next order

Confirm the authorised buyer, scope, price and payment arrangement for new supply through the proper process. Retain any agreed undertaking concerning earlier debts separately. Avoid allowing operational staff to treat an informal assurance as approval for unlimited credit. If terms remain unresolved, obtain advice about existing contractual obligations before deciding how to proceed.

Track performance against the actual agreement

Match future receipts and deliveries to the confirmed documents and preserve any unmet conditions. CRP can help review the commercial options. The aim is to assess a real proposal without allowing the hope of recovering old arrears to obscure the fresh exposure created by the next order.