BEHIND THE SCENES –
THE REAL FISHY TALE
Recently a Printer did business with well-known local company, thinking this customer was his proverbial ‘Golden Goose’. The Printer believing the illusion allowed this customer a disproportionate line of credit that exceeded $250K+, and because this customer always made small payments mingled with promises for more ‘soon’, the Printer allowed this customer to be a slow-payer who then became a slower-payer, and who ultimately became a no-payer when the company filed for Bankruptcy.
THIS IS WHEN PRINTING INDUSTRY CREDIT BUREAU WAS ENGAGED.
Typically a bankruptcy ends a creditor’s rights, but as always PICB looks deeper for a solution. Our due diligence revealed that approximately 5 years earlier, the principal’s son decided to split the company into three separate legal entities, each being independent from one another despite all three operating at the same address, having the same principals, and all using the common work essentials to jointly mass produce the product they then sold to the consumers.
The printer never realizing there were 3 companies only contracted with the one entity that recently filed bankruptcy declaring – no assets, therefore no payment to the unsecured creditors.
SO WHAT WOULD YOU DO DIFFERENTLY TO SOLVE THIS FISHY TALE?
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