As treasurers are expert at managing liquidity risk, a company with cashflow difficulties benefits from giving the treasurer the final say on making payments.
Commercial reality and ethics are as much a guide as the law in deciding how a company should proceed with its suppliers. Seeking legal remedy can sour a commercial relationship.
When a company begins to fall behind with its payments, it enters a cycle from which it is difficult to break free. The support of the bank in such circumstances varies across national boundaries.
