BT-REQ-1940 Consumer Holiday Guide 2023 v9 BH - Flipbook - Page 13
If you notice these warning signs, you
should take steps to protect yourself.
Although each situation is unique,
strategies may include:
• Getting familiar with the customer’s
昀椀nancials. Review public 昀椀lings,
if available, or demand 昀椀nancial
reporting as a condition to continued
shipments.
• Demanding cash on delivery for
new shipments or services, which
alleviates both credit risk and
preference exposure.
• Examining supply agreements
and considering termination or
modi昀椀cation of those agreements in
advance of a bankruptcy.
• Requesting payment of outstanding
invoices (possibly at a discount) prior
to ful昀椀lling any future shipments.
• Advocating to be treated as a “critical
vendor” in the event of a bankruptcy
(which will provide some payment of
pre-bankruptcy invoices in exchange
for providing credit in bankruptcy).
Most importantly, keep the lines of
communication open with a distressed
customer. The more information you
have, the better you will be able to
navigate a di昀케cult situation. Happy
Holidays!
