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Can you share different types of payability horror stories?

2024-10-24 22:48
2024-10-25 01:06

Definitely. There are stories where companies change the payment terms mid - contract. For instance, a service provider was contracted to be paid monthly. But after a few months, the client changed it to quarterly payments without proper notice or negotiation. This disrupted the service provider's financial planning. Another type is when a debtor files for false bankruptcy. A creditor was left with no option but to fight through a long legal battle to prove the debtor was not truly bankrupt, but in the meantime, they were not getting paid.

More Answers

Sure. One type is the disappearing client. A vendor provides goods or services, and then the client just vanishes without paying. Another is the payment in kind that turns out to be worthless. For example, a content creator was promised payment in the form of shares of a startup. But the startup failed, and those shares became worthless. There are also cases where the payment gets held up in bureaucratic red tape. A supplier shipped goods to a government agency, but due to complex paperwork and approval processes, the payment took years to come through, causing the supplier financial strain as they had to keep up with their own costs in the meantime.

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