Issuing annual renewal invoices too early

IP2 · #11 (**permalink**) 19-05-2008, 18:56

Might be worth looking at when their "year end" is. Being cynical if they need to raise finance or shore up their end of year results, issuing these invoices early could support a 'fixed' balance sheet.

Indizine · #12 (**permalink**) 19-05-2008, 19:07

Yes, which can be a bugger if they're large amounts! Not got that issue yet though I wouldnt want it either!

The invoice has actually been received 2 months before being due and Ive just checked and guess what?? It says at the bottom 'payment due immediately' - now that is cheeky!

I can assure you it isnt out of courtesy - I know them very well - well enough to phone the CEO tomorrow and ask him myself, but thought Id just check it out. I reckon it could be cash flow issues, and it looking like there is money there, just not been paid yet!

IP2 · #13 (**permalink**) 19-05-2008, 19:12

Quote:

Originally Posted by Indizine

Yes, which can be a bugger if they're large amounts! Not got that issue yet though I wouldnt want it either!

The invoice has actually been received 2 months before being due adn Ive just checked and guess what?? It says at the bottom 'payment due immediately' - now that is cheeky! I can assure you it isnt out of courtesy - I know them very well - well enough to phone the CEO tomorrow and ask him myself, but thought Id just check it out. I reckon it could be cash flow issues, and it looking like there is money there, mjust not been paid yet!

Without knowing more, that is how it looks to me!

Indizine · #14 (**permalink**) 19-05-2008, 19:18

IP2, im sure the year end is 31st March, so it could only make th first quarter look good, not the year end.

IP2 · #15 (**permalink**) 19-05-2008, 19:25

Quote:

Originally Posted by Indizine

IP2, im sure the year end is 31st March, so it could only make th first quarter look good, not the year end.

Rules out half my theory then! Which would seem to point at raising finance IMHO.

How much are you currently owed? Always handy if looking for a loan to be able to 'officially' bump that figure up!

Indizine · #16 (**permalink**) 19-05-2008, 19:27

Im lost? what do you mean how much am I owed? I think the thread has got tangled with the vat element being mentioned so ignore that, it was just hypothetical about a comment I returned, but not relevent to the thread itself, as such.

IP2 · #17 (**permalink**) 19-05-2008, 20:10

Quote:

Originally Posted by Indizine

Im lost? what do you mean how much am I owed? I think the thread has got tangled with the vat element being mentioned so ignore that, it was just hypothetical about a comment I returned, but not relevent to the thread itself, as such.

Misunderstanding Missy...not how much are YOU owed..

Read "you" as in "their company"

If they can show 1000 people of companies owe them £1 each, they have an asset of £1000 to borrow against. In this case I am sure the numbers are probably far bigger, so it is an asset to use while raising finance. Is that clearer?

Indizine · #18 (**permalink**) 19-05-2008, 20:12

Oh rightio, I get you now! Interesting then.

IP2 · #19 (**permalink**) 19-05-2008, 20:16

Quote:

Originally Posted by Indizine

Oh rightio, I get you now! Interesting then.

Definitely!

Might make you want to think about whether their services will be there for their full subscription - just reading between the lines!

Indizine · #20 (**permalink**) 19-05-2008, 20:24

oh no problem about that, they sure will be, they're a city high profile org.