This is an age-old credit and collection question and one that doesn’t often have a one size fits all answer.
Some creditors might stand by their customer’s difficulty and try to help them out in depth because of the long-term relationship, which was a key component to their own success. Conversely, other creditors may have to call it quits if their own financial survival comes into question.
I have come across creditors who actually get involved in the business planning and inventory redistribution of their customer due to the unique quality of the reprocessing of the product that is sold to the end user. Or for whatever reasons, they just realize that they both need each other.
Other times, and for the most part, with little depth to the relationship and a relatively small balance owed, it just doesn’t pay to get involved. I suppose it all comes down to a case-by-case situation.
Nancy Seiverd, President, CMI Credit Mediators, Inc.
