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Case Study ~ Euro-Tran Despatch
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| The option for a customer to find a new supplier when unable to pay an existing supplier enables many companies to trade for lengthy periods prior to failure, resulting in a string of suppliers being hit with bad debts. |
| | Dave's story |
| "My Courier business was approached to provide an Overnight service to an on-line e-bay retailer. This company had no negative credit information, had traded for just over a year, and had requested £6,000 of credit.
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| | His existing supplier was a well known global company and, bearing in mind the lack of negative information, we decided to proceed cautiously and give the company a go. In the first three days of trading it was clear that within a week his credit would have been fully spent. At the end of the week we collected payment in full and asked the bank for same-day clearance of the cheque - it bounced ! We placed the company OnStop after 8 days trading, having lost close on £10,000. |
| | Investigating the company more closely we found that, not only had we lost money, the client had failed to pay his previous supplier £120,000, prior to that another Carrier had lost £14,000, and further enquiries found two previous carriers had also lost money, Neither would provide sums but it is thought a substantial amount was involved. |
| If all these carriers had been members of OnStop, then AT LEAST £150,000 would have been saved within the industry.
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| | The client is now in jail. However that provides little satisfaction for the lost sums." |
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