Your supplier has put your account on stop: what to do tonight

The email arrives at 6.47pm on a Friday: “Your account has been placed on stop pending payment of the overdue balance.” No more deliveries, no more credit, and nobody in their accounts team until Monday. It’s a gut-punch — but it’s also one of the most fixable problems on this list, if you handle the next few hours well.

Why do suppliers put accounts on stop?

Because it’s the simplest lever they have. When an account goes past its terms, many suppliers’ systems automatically block new orders until the balance is paid or someone agrees an arrangement. It’s rarely personal. Your account rep may not even know yet.

That’s useful to remember when you reply. You’re not begging for forgiveness; you’re resolving an account issue with a business that wants to keep selling to you.

What should you do tonight?

Four things, in this order:

1. Check the facts. Find the supplier’s latest statement. What’s overdue, what’s current, and what’s the total?
2. Work out your runway. How many days of stock or materials do you have? When does the stop actually start to hurt?
3. Reply briefly. Acknowledge, explain you’re arranging funds, give an update time.
4. Send your finance enquiry, so it’s read at the start of the next business day.

A reply that works:

“Thanks for letting me know. I’m aware of the overdue balance of $38,400 and I’m arranging funds to clear it. I’ll update you by 12pm Monday with timing. I value our account and want to get it back on normal terms.”

What it doesn’t do: promise a payment date you can’t yet control. A missed promise hurts more than an honest update.

Want Monday to start with a plan? Send your 60-second enquiry now. There’s no credit check when you first enquire.

How long can you trade while on stop?

It depends on your stock, your supplier and whether there are alternatives. Map it out:

Question	Why it matters
How many days of stock do you hold?	Your real deadline
Is there another supplier for the same items?	Buys time, though often at a cost
Are there customer orders that depend on this supplier?	Shows what’s at risk
Would a part payment restart supply?	May be a faster fix
Will they want cash on delivery going forward?	Affects how much funding you need

If your runway is longer than a few days, you have time to arrange funding properly. If it’s shorter, focus on what can move fastest.

What can you pay tonight?

If you already have some funds — in another account, for example — a fast payment over the NPP can reach the supplier at any hour, as long as both banks support it and it isn’t held for checks. Australian Payments Plus notes that some Osko payments may be held for security purposes, so if it’s the first time you’ve paid this supplier this way, see our page on payment holds.

And a word of caution: if a message arrives tonight saying the supplier’s bank details have “changed”, don’t pay to the new account until you’ve confirmed by phone, using a number you already have. Late-night account-change requests are a classic scam.

What funding might suit a supplier problem?

It depends on the size and the cause:

• A one-off overdue balance: a short-term facility, repaid from incoming customer payments. Unsecured options for trading businesses are typically $5,000 to $500,000, sized on turnover and bank statements.
• A larger balance, or several suppliers at once: property security opens up larger amounts, with $20k to $250k possible the same day once the file is complete.
• Lumpy cash flow that keeps causing this: a line of credit can act as a buffer for supplier payments.

Your purpose sentence might read: “Clear an overdue supplier balance and fund two weeks of cash-on-delivery orders while the account returns to terms.” Our page on writing your purpose and exit shows how to finish it.

How do you stop it happening again?

Once the account is back on terms, a few habits reduce the chance of a repeat:

• Match supplier terms to customer terms. If you pay suppliers in 30 days but customers pay you in 60, the gap has to be funded somehow. The business.gov.au payments and invoicing guidance covers setting terms and chasing late payers.
• Talk before the due date, not after. Suppliers are far more flexible with a customer who calls a week early than one who goes quiet.
• Keep a buffer. A small line of credit or a cash reserve for supplier payments turns a slow month into an inconvenience rather than a stop.
• Watch the aged payables report. A weekly glance shows which accounts are drifting before they trigger a stop.

Illustrative example: the Friday-night stop

Illustrative example; not a real business or supplier.

A building supplies retailer in regional NSW receives a stop notice from its main timber supplier at 6pm on Friday. The owner checks the statement — two invoices are 30 days overdue after a slow patch — and works out he has about eight trading days of stock. He replies that evening with the balance, a note that funds are being arranged and a Monday midday update time. Then he enquires, mentioning the amount, the reason and the commercial property he owns.

On Monday he updates the supplier as promised: funding is in progress and expected within two days. The supplier lifts the stop for a small urgent order in the meantime.

Get supply moving again

Most suppliers want to keep your business. A calm reply tonight and funding arranged quickly usually restores the relationship — sometimes stronger than before.

Filling in the enquiry takes a minute or so. There’s no credit check at this stage, and your details don’t get passed around to a queue of lenders — one team reads them, and a real person calls you. Please be accurate about the balance, your stock runway and any property, so we can match you properly the first time. See if you qualify. For a big order that’s stretching you at the same time, see funding a big order.