Ann: Market Update - Tritium Order Fulfilment, page-20

Of course.

Many, many businesses ship before payment. Usually recievers pay for the goods monthly or quarterly etc.

In RFT's case, where they are a small business and dealing with a larger businesses they trusted, they may have let deficits run for a few months, without cutting off supply.

If a company and its management have little experience with this kind of thing and they really trusted them, they may have let no payments run for 3/4/5/6 months without putting foot down and cutting off supply.

Gets tough when it's such a large potential customer. You don't want to destroy chances of future sales by jeopardising the trust.

And that's how you find yourself in this situation.

https://www.businessnewsaustralia.com/articles/asx-listed-rectifier-technologies-claims--25m-debt-from-collapsed-tritium.html


However, a good/experienced manager will never let arrears get this bad. Hence he stepped down.