The story was all too familiar…
Your delinquent customer claimed their sales were way down. Even worse, their customers were paying them slowly…or not at all. Their cash flow lagged. They had barely enough money to cover their current bills.
They repeatedly tried to find financing, but couldn’t. Secured creditors, employees, taxes and critical vendors had to be paid first. Hardly anything was left for unsecured creditors. You set up a payment plan, but it was broken because the money that was allocated for you was used to pay other creditors.
You placed them for collection with another agency. Nothing was collected because they didn’t have the money.
Maybe you even filed a lawsuit and obtained a judgment - yet still no money was collected.
Pressures ultimately forced your customer to close their doors. The agency and attorney wasted their time and effort. You received nothing.
All the parties involved lost.