Putting an Account on Stop
Stopping supply is one of the most powerful levers you have — used decisively, it protects your cash and concentrates a slow payer's attention.
What you'll learn
- What 'on stop' means and why it works
- The triggers that should automatically stop an account
- How to communicate a stop professionally
- How and when to lift the stop
6 min read
Why stop-supply works
Placing an account 'on stop' means you cease supplying further goods or services until the situation is resolved — usually until overdue invoices are paid. It is powerful for two reasons. First, it caps your exposure: a customer who is not paying cannot keep increasing what they owe you. Second, it changes the customer's incentives, because a business that needs your supply to operate suddenly has a strong reason to settle.
Many slow payers prioritise suppliers who stop and keep paying late to those who do not. A stop, applied consistently, moves you up that queue. Used well, it is not an aggressive act but a disciplined one — the natural consequence, set out in advance in your credit policy, of an account exceeding the limits you agreed to extend.
Triggers that stop an account
Decide the triggers in advance so a stop is a rule, not a confrontation:
- invoices past due beyond a set number of days;
- the balance exceeding the agreed credit limit;
- a dishonoured payment or repeatedly broken promises;
- credible news of insolvency or serious financial trouble.
Writing these into your credit policy means the stop happens automatically, removing the awkwardness of deciding case by case while an exposure grows.
Communicating the stop
How you deliver a stop matters. Keep it factual and unemotional: state that the account has exceeded terms, that supply is paused under your standard policy, and exactly what is required to resume — usually payment of the overdue amount. Avoid blame; frame it as routine credit control that applies to all customers equally.
Give the customer a clear, specific path back to supply. A stop is most effective when the customer understands it is not personal and that resuming is entirely within their control. This is general information, not legal advice — be mindful of your contractual obligations when pausing supply under an existing agreement.
Lifting the stop — or escalating
Once the trigger is cleared — overdue invoices paid, the balance back inside the limit — resume supply promptly so the customer sees that cooperation works. If a customer is repeatedly stopped, treat that pattern as a signal to reduce their limit, tighten terms, or move them to cash-on-delivery.
If a stopped account still does not pay, the stop has done its job of capping exposure and the next step is recovery. Merion pursues overdue commercial debts on a commission-only basis with no upfront fee — see refer a debt when stopping supply has not produced payment.
Key takeaways
- Stopping supply caps your exposure and sharpens a slow payer's focus.
- Define stop triggers in advance so it is a rule, not a confrontation.
- Communicate the stop factually and give a clear path back to supply.
- Lift the stop promptly on payment, or escalate to recovery if it persists.
Frequently asked questions
Won't stopping supply damage the relationship?
Delivered as routine policy with a clear path back, it usually strengthens discipline — and protects you from a growing bad debt.
When should an account go on stop?
When pre-set triggers are hit — overdue beyond a set period, over-limit, a dishonoured payment, or signs of insolvency.
What if the customer still doesn't pay after a stop?
The stop has capped your exposure; the next step is prompt recovery of the outstanding balance.
Knowledge is good. Getting paid is better.
Merion's team recovers what you're owed — commission-only, no upfront fee.