Renee’s Rule™: The sooner, the better.March 22, 2009
Recently, I visited a potential client. The company was at Death’s Door. Their bank had not required any financial statements from them since September 30, 2008. Their bank had not suggested they get any outside assistance–even now.
Over and over again, I am seeing companies whose lenders have waited entirely too long to get timely financial statements from their customers and to take action to help the companies. Given the economy today, 3-6 months is entirely too long to wait to see how a company is doing.
In the case of the company above, I declined the engagement because these people were going to commit bank fraud because they saw no other way out.
There are some companies that can be saved–even with declining sales–but they need help at the earliest possible moment.