This message was posted by a user wishing to remain anonymous
We're a private company and likely are more attuned to the sensitivities of such companies.
Our approach is to make our next request for the balance sheet only. It tell us if they have reserves on hand. Most private companies, in our experience, are willing to share the balance sheet.
An attestation is all you have left after that.
Of course, it is your company that is paying them. This isn't a credit decision...this is a survivablility decision. Meaning: How long have they been in business, how big is their customer base, how credible is their solution to the problem you face.
All of the other key initial questions can help you assess if any particular vendor will end up leaving you in the lurch.
Then again, 16 years ago or so - nobody saw Bear, Stearns or Lehman Brothers ending up out of business. But they are, with the whole or pieces acquired by others.
Hope this helps. Good luck.
Original Message:
Sent: 07-19-2024 02:10 AM
From: Anonymous Member
Subject: Financial Alternatives
This message was posted by a user wishing to remain anonymous
We have been having issues obtaining financials from privately owned companies what do other companies do to assess this risk?