Quick answer
If a supplier puts your account on stop, call their credit manager the same day, confirm the overdue amount and ask what would release supply — often a part payment now plus a firm date for the rest. A short-term business loan can fund that payment. Unsecured cash-flow loans can be fast for smaller amounts, while property-secured options suit larger arrears, with $20k to $250k possible the same day.
Key points
- Credit managers want a plan more than an apology — a specific amount and date moves them.
- Part payment plus a written timetable often reopens an account faster than you'd expect.
- Losing a key supplier can cost more than the arrears — late jobs, lost customers, penalties.
- Funding can pay the supplier directly, which reassures both the supplier and the lender.
- First call
- Supplier's credit manager
- Typical fix
- Part payment + firm date
- Fast route
- Unsecured cash-flow or property-secured loan
What does “on stop” actually mean?
When a trade supplier puts your account on stop, it suspends credit. Orders won’t be picked, deliveries won’t leave the warehouse and your rep may stop returning calls until the account is brought back in line. For a builder waiting on frames, a restaurant relying on a food wholesaler, a mechanic needing parts or a retailer heading into a peak season, it can stop work within days.
It usually happens after a run of late payments, a cheque that bounced or an account that drifted past its limit during a busy period. It’s rarely personal. Credit managers are paid to manage risk, and an account that’s overdue without explanation is a risk.
What should I do in the first hour?
- Pull the supplier statement and reconcile it. Make sure you agree on what’s owed and what’s overdue.
- Call the credit manager, not the rep. The rep can’t release the account; the credit team can.
- Ask a direct question: “What do you need from me to release supply this week?”
- Make an offer you can keep. For example, the oldest invoices today and the balance by the end of the month.
- Put it in writing in an email straight after the call.
- List the jobs or orders affected so you know exactly how much time you have before customers are let down.
Our guide to calling creditors to buy time includes a simple script for this call.
What if I can’t make the payment the supplier wants?
That’s where funding comes in. The aim is usually not to pay every supplier in full today but to release the one or two accounts that hold up the rest of the business.
| Arrears and position | Usual route | What’s possible |
|---|---|---|
| Smaller arrears, trading 12+ months | Emergency cash-flow loan | Same-day funding possible for smaller unsecured amounts |
| Several suppliers behind | Unsecured business loan or line of credit | Typically $5,000 to $500,000, sized on statements |
| Large arrears, property available | Caveat loan or second mortgage | $20k to $250k possible same day |
| Arrears plus ATO debt | Property-secured consolidation | Up to $5m possible within 24–48 hours |
Paying the supplier directly from the loan is common and often helpful — the supplier sees the money arrive and the lender knows it went where you said.
Illustrative example: a builder waiting on frames
Illustrative only. A Melbourne residential builder has $64,000 overdue with its frame and truss supplier after two clients paid progress claims late. The supplier puts the account on stop. Three homes are waiting on frames, and each week of delay pushes back the next progress claim.
The builder calls the credit manager, who agrees to release supply on payment of the two oldest invoices ($41,000) and the rest within 30 days. The builder has 2 years of bank statements and steady turnover. An unsecured business loan of $45,000 is approved and paid directly to the supplier. Frames are delivered that week, the next progress claims go in on schedule, and the loan is repaid from those claims.
How do I stop it happening again?
- Match terms to cash cycles. If your customers pay in 45 days and your supplier wants 30, the gap is built in. Negotiate terms or plan funding for it.
- Talk early. A call before an invoice goes overdue keeps the account open far more reliably than one after a stop.
- Keep a buffer. A standing line of credit covers the timing gap without emergencies.
- Chase your own debtors. Supplier problems often start as customer problems — see when a customer hasn’t paid.
If you think a supplier is acting unfairly under your contract, the Australian Small Business and Family Enterprise Ombudsman offers dispute support.
What if more than one supplier is pressing?
Rank them by how much of the business depends on each one. Release the supplier whose goods stop the most work first, then talk to the others with a dated plan. If several accounts and the ATO are all overdue at once, a single consolidation loan may be simpler than funding each separately.
Get supply moving again
A supplier on stop is a clock running on every job that depends on it. Start the enquiry now with the supplier statement in front of you.
Enquiring doesn’t involve a credit check, and we won’t push your details out to every lender in the country — one specialist handles it and calls you. Accurate information on the arrears, the supplier’s release terms and your property position lets us choose the right route first time. See if you qualify today.
Frequently asked questions
Can a supplier stop supplying me if I'm behind?
Usually, yes. Most trade credit terms allow the supplier to suspend supply when an account is overdue. Some agreements also have retention of title clauses, which affect goods already delivered but not paid for.
How much should I offer to pay?
Ask the credit manager what would release supply. Often it's the oldest overdue amount, or a percentage now with the rest by a set date. Offer something you can definitely do — a broken promise makes the next conversation harder.
Should I switch suppliers instead?
Sometimes, but new suppliers often want cash on delivery or trade references, and switching costs time. Getting a reliable supplier back on side is usually faster.
Can a loan be paid straight to my supplier?
Often, yes. Paying the supplier directly at settlement is common and gives everyone confidence about where the money has gone.