A client’s largest customer announced a financial crisis. The client turned to The Kane Firm for advice on how to mitigate the impact on his company.
Our first step was to assist our client in securing the support of the client’s banker. This is a unique approach as typically, businesses are not eager to disclose bad news to their bankers. However, in reaching out to the banker immediately, our client bolstered the trust between himself and the banker.
Alternative plans were made to allow the customer’s end-users to purchase directly from our client rather than forcing them to find new suppliers. Throughout the process, we kept an open line of communication between the troubled customer and our client, taking care to not run afoul of potential bankruptcy regulations.
The bad debt (on The Kane Firm’s client’s books) was largely mitigated. The customer was ultimately bought out, but our client maintained a strong relationship with the new company. Our client also was able to form several new and valuable customer relationships.
Years later, our client’s banker continues to comment to our client and bank officials on our client’s positive, proactive approach to the situation.