Tell the creditor what you can establish, what you cannot yet promise and when a reliable update will follow. Silence leaves them guessing.
Corporate Recovery Partners
01 / 06
The creditor still expects a payment you cannot make
A small wholesaler knows it cannot make Friday’s supplier payment. The owner keeps postponing the call because there is no complete solution. Meanwhile, the supplier is preparing a delivery in the belief that payment is coming. A clear conversation is needed before both businesses make further decisions based on a promise that will not be met.
Confirm the amount, due date, payments already made and any disputed part. Check whether there is a formal notice, settlement or security document that needs legal attention. A routine call does not replace a required response.
Prepare a short cash position showing what is available and what remains uncertain. Do not state that you can pay a particular amount until you understand its effect on other obligations.
Say clearly that the agreed payment cannot be made and identify the reason you can support. Avoid elaborate stories or blaming a customer for a receipt that was never confirmed.
Ask who can consider a proposal. If you do not yet have a defensible payment date, give a specific time for supplying the missing information rather than inventing a repayment promise.
Where the forecast supports it, propose an amount and schedule with relevant evidence. Business.gov.au’s cash-flow guidance helps assess whether payment dates are realistic. Ask the creditor to confirm acceptance and any conditions.
Check how future supply, fees, enforcement and existing arrangements will be treated. A creditor agreeing to review your figures is different from agreeing to suspend its rights.
Send a factual written summary, correct misunderstandings and retain the response. Give staff clear instructions about further orders and who handles account contact.
If several creditors cannot be paid, seek qualified advice about the whole business. A good conversation can reduce confusion, but repeated unaffordable promises require more than better wording.
