Subnostr

Yvan 2y ago

One thing running my own business has taught me is that this is a not-uncommon English business model:

1. start a limited company

2. buy and sell goods

3. pay yourself a big wage

4. only pay selected suppliers for core supply to keep you going

5. withhold funds from many other, usually smaller, suppliers who're reluctant to take action for £2k of bills

6. eventually get forced into administration, wipe out all debt, walk away with a fat personal bank balance

Yes, people are arseholes.

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Discussion

Yvan 2y ago

I don't know about other industries, but it's pretty rife in the beer & hospitality sector.

Unfortunately it's rarely evident until it's too late.

And the UK Limited Company system pretty much endorses this behaviour by its very structure - i.e. there's generally no repercussions for the folks running a scam like that. There is no authority that is interested in this sort of fraud.