Dear Aunty B
Unless a contract comes through, we will not be able to pay our bills in a month’s time. The chances of the contract coming through are good, so it is business as usual and I’m confident we can trade out of this difficult period. However, I have a moral question for you.
Is it OK to accept a supplier’s goods when in a period of uncertainty?
That’s tricky. Entrepreneurs are optimistic by nature and have a propensity to lean towards positive outcomes. This has its benefits when times are good but can land you in loads of trouble.
I’m sure you’re across your legal requirements – you cannot trade while insolvent. Morally? It’s always good to remember you are spending your creditors’ money. The creditors will pay the bills if things go wrong.
I would get an adviser in to give you a second opinion. Is the business in a very bad way and do you have your head in the sand? Or are you panicking unnecessarily and there is another way forward? The adviser can spell out your responsibilities, both moral and legal.
It’s a tough call for you to make, because no entrepreneur worth their salt is going to pack up too early. But we have major responsibilities to our creditors that we must always take into account.
Your Aunty B.