It’s a common scenario now: Out of the blue a longtime customer goes bust, and the shell-shocked firm loses a ton of sales. But nine times out of 10 this can be avoided.
Chapter-11 revelations from the even most tight-lipped and careful customer should come as no surprise — if you do your homework.
In addition to usual places — ratings agencies, court databases, etc. — experts at the National Association of Credit Management (NACM) suggest checking these two places for the most current info on your customers.
- Bankruptcy lawyers. On top of important info on codes and protocol, bankruptcy counselors are likely to have their fair share of truly key industry contacts.
Example: Claims traders who have bought a firm’s assets when they were looking for fast cash … pre-chapter 11.
- The local paper. When it comes to smaller customers, be sure to keep daily tabs on the newspaper. It’s almost criminal what local rags are willing to print about area businesses.