BlodgettVentures.com

An office products company was marginally profitable but was experiencing acute negative cash flow due to carrying a high accumulation of supplier accounts payable. Creditors called incessantly, intimidating the company into spending available cash to cover the past due account balances.

Many suppliers had placed the company on COD and some were forcing the company to prepay for orders. It looked like bankruptcy was the only way to get the creditors neutralized.

Instead, Blodgett Ventures business consultants negotiated reduced debt with most suppliers outside of bankruptcy at an average of 15 cents on the dollar. A convincing case was made with each supplier that they would gain much more by allowing continued operations of the company in the years to come. Many suppliers restored net 30 terms.

Creditors were paid reduced balances off over time and the company survived.  Creditors WILL work with companies that have a solid debt reduction plan.