If you did not read my mini rant about Summit Valuations, a BPO company that is slow in paying their vendors - in this case me! for doing a BPO read this here
Well this morning I was mildly surprised to have an email from Summit Valuations CEO, Jim Clark. Mr Clark was kind enough to tell me the reason why his company is behind 6 months in paying their vendors.
Due to the credit market being frozen during this real estate/economy downturn their "float" from the bank disappeared and one of their biggest "clients" also owes them a lot of money. Now it does not take a rocket scientist to figure out who BPO companies clients are.
While the American people bailed the banks out with TARP as we now know with movies such as "Too Big to Fail" and books like "Bad Money" by Kevin Phillips and many, many others available the banks used TARP funds not to ease the credit crunch or help out homeowners by doing loan modifications and even short sales.
No, they used the funds to buy out smaller banks and make themselves even bigger, put up even more hoops for people to jump through and blame it "on govenment" program while not following the guidelines for those programs.
So, although its a small comfort it was nice of Mr. James Clark to take the time to reach out and send me an email to ease my frustration. It might have been the tweet that I sent out or the frustrated response to their accounting department's initial response, but whatever the reason most CEO's do not take the time or have their staff take the time to reach out to the smallest vendo with any type of indepth explanation.
So, kudo's to Mr. James Clark! May your "big client" pay up so the rest of us "small vendors" can get paid and your company can continue to do business.
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