COmpany fails due to no credit

[dmcowen674]

Originally posted by: Specop 007

Mother's Cookies Goes Out Of Business, Kills Off Circus Animals

This company was featured as a Jeopardy question tonight and now they are gone.

History is quite something.

 

[PrinceofWands]

*shrug* Any individual or company that requires credit to survive deserves to go out of business. My guess is it's just an excuse for an otherwise failing business.

 

[PrinceofWands]

Originally posted by: MadRat
I could not believe people don't understand how larger companies make payroll with loans. This is standard procedure at many places because their working capital is tied to investments or projects and cannot be immediately freed up. Your banks used to loan money like that if you could show the contracts you have signed by customers as proof that you can pay them back. This is how it works regardless if you are in a big or little business. And this credit crunch is really putting everyone's tit in a wringer right now.

The money is being loaned to banks by the fed only nobody is getting the money trickled down to them. Banks are covering their asses for some reason. I have a feeling there are a lot of banks that are insolvent right now and they are trying to hide their troubles until the feds show their cards.

But that's not universal. I've worked for many businesses that didn't ever take a loan, not even to get started. No business in my family ever relied on loans. It may happen in some, maybe even many, businesses...but not all. There are plenty of people who only ever use credit for a mortgage once in their life and then never touch it again. You'll recognize them today because they're the ones who aren't stressing at all.

 

[dmcowen674]

Originally posted by: Capt Caveman

Originally posted by: dmcowen674

Originally posted by: Capt Caveman

Originally posted by: dmcowen674

Originally posted by: Capt Caveman

You have never run a business then. Have you? What do you do for work? I've brought a company public. We used credit lines to purchase millions of dollars in raw materials to manufacture product, meet payroll, etc.

Too many noobs in this forum.

I had a Bank Vice President say that is illegal and fraud. You should be in jail.

Please explain how it is illegal and fraud? Every company in the world uses credit lines.

For expansion, not payroll

Wrong. And fix your sig, you're an ignorant fool.

Originally posted by: PrinceofWands
*shrug* Any individual or company that requires credit to survive deserves to go out of business. My guess is it's just an excuse for an otherwise failing business.

I've said this many times over the year here.

 

[Muse]

Mothers! I'm thinking about going out and buying a package of Taffy Cremes (or whatever they call them these days). On the news it said that Monday's going to be the last day the plant stays open.

 

[Muse]

Originally posted by: CaptnKirk
Evil bastards! They killed Kenny.

Kenny who?

 

[Muse]

Originally posted by: Muse
Mothers! I'm thinking about going out and buying a package of Taffy Cremes (or whatever they call them these days). On the news it said that Monday's going to be the last day the plant stays open.

I just ran out and bought a package. My last taste.

 

[bctbct]

Using credit is a very common practice in the construction business. We can have millions in payroll and materials on jobs that typically take 90-180 days to get paid for.