During a crisis situation there are many problems which a company may experience which are critical to
the short term and long term viability of the business. Two primary relationships require significant attention
and concern: the relationship with vendors and the relationship with lender(s) and/or investors.
It is difficult to "move" a company forward if their primary vendors have ceased shipping
products/services due to delinquent payments from the company. In some instances, the company has
made numerous promises to make scheduled payments, and has failed to comply with these agreements.
This might result in reduced credit terms (a reduced credit ceiling or shorter net due date for purchases), a
higher price structure, COD payments, payment in advance, payment by certified check, or ultimately a
complete cessation of purchasing options often times resulting in litigation. Any one of these resulting
actions could prove to be fatal to the company.
Concurrent with these types of problems is the relationship with the primary lender, the bank. At this point
in time, the company is most likely not operating in a profitable manner, and the bank may have listed the
loan as "non-preforming" even though loan payments may be current. Or, in a worse case
scenario, the company is delinquent on their loan payments which creates even greater problems.
There are creative solutions which we offer during these problematic times.
We offer an "outside, objective" point of view to the company as well as to their vendors and
lenders. We will review various activities and operations of the company, and will develop an initial plan
to deal with current financial needs (including a plan to deal with delinquent payables). Frequent, and
sometimes daily communication is maintained with vendors and/or the bank to provide them with adequate
The company is advised on how to restructure their purchasing policies, their pricing policies, the collection
terms for products/services sold to their customers, in an effort to definitively identify a reasonable cash
flow necessary to satisfy vendors and the bank. Sometimes, this can require drastic restrictions, or even
a "pre-approval" process for purchasing and/or payment. This process usually restructures
internal procedures in such a fashion that purchasing power is maintained, thereby allowing the company
to continue operation. In some instances, due to restructured policies and procedures, credit lines and
terms are increased by the vendors!
The level of trust between a vendor and the company can be re-established if future activities are
conducted with complete honesty and communication. This requires that constant open lines of
communication need to be maintained, and that every agreement made is complied with. We deal
directly with the vendors, establish purchasing and payment controls, and create strategies to ensure
that every opportunity to continue operations is maintained while also reducing delinquent payable
This type of operational oversight is also communicated with the lender to assure them that significant
efforts are being taken to reduce operating losses and increase profitable activities.
If you would like to discuss how our services can assist you with your vendor and creditor relationships,
please contact us to schedule an initial consultation.
To request additional information, click on: Information Request Form.