Quote:
Originally Posted by Michael Beard
I've read that they were one of only two companies provided cores to the industry. With that and everything else they do, what exactly made the company unprofitable?  |
I have no idea of Crane's situation, however many times it goes like this. Way more companies go out of business because of cash flow, than profitability. With the current tightening of credit, banks are not allowing companies to "pass" on extra days of payment. In fact, they are asking many companies to improve the number of days out the invoices are. At the same time sales go slow so you have less money to work with. The bank calls up and says no more! So last years 40 days is asked to be 30 days, with less sales and maybe even less profitability.
My suppliers are giving me less days to pay invoices than they did last year, and they are blaming the banks. I had to make up the difference out of my pocket, actually out of Annette's spending money.
