Any more ex-Fonterra suppliers out there?

[Ocean1]

http://www.stuff.co.nz/business/farm...ister-John-Key

As of last week they're in default of the T&C associated with my invoices.

Which means far from needing to avail myself of their kind offer of special loans to tide me over until they see fit to pay me they simply go on stop credit.

And I don't like their chances of surviving the next couple of months without that causing them stoppages costing them approximately 5,000 times the value of the outstanding account.

I'm not their fucking bank, if they're having cash flow problems, (and they're not) then THEY're the ones that need to go cap in hand to the bank for a loan, not their suppliers.

Cheeky cunts.

[skippa1]

http://www.stuff.co.nz/business/farm...ister-John-Key

As of last week they're in default of the T&C associated with my invoices.

Which means far from needing to avail myself of their kind offer of special loans to tide me over until they see fit to pay me they simply go on stop credit.

And I don't like their chances of surviving the next couple of months without that causing them stoppages costing them approximately 50,000 times the value of the outstanding account.

I'm not their fucking bank, if they're having cash flow problems, (and they're not) then THEY're the ones that need to go cap in hand to the bank for a loan, not their suppliers.

Cheeky cunts.

Yup, $40k mth they owe us.....fucken drag it out......

[Grumph]

You weren't the engineer/supplier on talkback today were you ? Talking about the problems associated with shutting down a 50T drier...and where the incoming river of milk has to go....He reckoned they should have built 5X10T dryers so shutting one down didn't cause chaos.

But anyway, they're bigger than you, might is right in this govt's eyes...good luck.

[Akzle]

they've been technically insolvent for years.

Ahhh. Economoney.

[sidecar bob]

Can someone please explain to me how the fuck you can steal milk off farmers, sell it on the world market & go broke doing so?

[caspernz]

Can someone please explain to me how the fuck you can steal milk off farmers, sell it on the world market & go broke doing so?

The management chain got a bit chunky and greedy. Capitalism 101 me thinks.

[Akzle]

the world market

ocean is all about this.
Free market economoney, value, worth, money, it's all good solid stuff.

[Madness]

I'm almost certain it's the fault of career beneficiaries.

[HenryDorsetCase]

I listened to that dutch cunt tayo speeeeeeeeering today. What a cunt. Trying to say they had "regularised" their supply because they were competing on a world market. Fuck that shi. Plus the cunts made 409 million half year profit. Not just font error though. I know someone who does work for hardly normal. They tried to put him on 90 dy turnaround. Fuck you, he said i dont ned you, but you need me. You pay 20th of the month following or all that shit over there is smashed with a hammer and goes to the dump. They pay. As they have done for 10 plus years

[HenryDorsetCase]

ocean is all about this.
Free market economoney, value, worth, money, it's all good solid stuff.

National party plant everyone!!!!!!

[Woodman]

I don't understand why these companies extend their payment terms, it can only help them out for a month, then its back to normal. Unless they want to skew some profit results for misleading reporting purposes?

[Ocean1]

You weren't the engineer/supplier on talkback today were you ? Talking about the problems associated with shutting down a 50T drier...and where the incoming river of milk has to go....He reckoned they should have built 5X10T dryers so shutting one down didn't cause chaos.

But anyway, they're bigger than you, might is right in this govt's eyes...good luck.

Nope, not me. Sounds like their typical planning though.

And I don't care how big they think they are, they're barely a blip on my revenue and if they can't meet my terms and conditions they can get fucked. Without their work whatever hrs I invoice them for would be invoiced to someone else, someone who pays me when they agreed to, why would I put up with less from them?

It'll take them another couple of months to work that out, even though I've already warned them, and even then they won't source an alternative in time to avoid some savage downtime. Couldn't organise a piss up in a brewery.

Can someone please explain to me how the fuck you can steal milk off farmers, sell it on the world market & go broke doing so?

They're not broke. They're just deciding to pay all of their suppliers a month or two later. Does wonders for the bank balance AND puts about 4% on annual results.

And the complete opposite for their suppliers, of course.

To be fair 90 days is fairly common overseas, rather than the ubiquitous "20th of month following invoice" normal here, and when I work off-shore I accept that, and build it into the price. 8% contingency, usually.

[Ocean1]

I don't understand why these companies extend their payment terms, it can only help them out for a month, then its back to normal. Unless they want to skew some profit results for misleading reporting purposes?

It's an extra two months with your money in their accounts, saves them heaps.

To put it into perspective, I'm tiny but even for me that would mean I could pull maybe $100k out of my business all together, my clients unpaid bills would be funding my business.

[Woodman]

They're not broke. They're just deciding to pay all of their suppliers a month or two later. Does wonders for the bank balance AND puts about 4% on annual results.

And the complete opposite for their suppliers, of course.

To be fair 90 days is fairly common overseas, rather than the ubiquitous "20th of month following invoice" normal here, and when I work off-shore I accept that, and build it into the price. 8% contingency, usually.

Wonder how many suppliers will now raise their prices to Fonterra?

[Mike.Gayner]

I don't understand why these companies extend their payment terms, it can only help them out for a month, then its back to normal. Unless they want to skew some profit results for misleading reporting purposes?

They can get by with a lot less working capital, which means they can put that money to use elsewhere for a better return. It's shitty and scummy, but it's a nice little tactic if you can use it.

Look at it this way: if your boss only paid your wages once every six months, it's "only a timing issue", but you'd need a big cash float to pay all your bills in the mean time. If your boss starts paying you weekly, you can use that cash on other things.