Strategies for Sole-Source Suppliers Facing Key Customer Financial Difficulties

By Scott Blakeley - Here's the scenario: Your company is a sole-source supplier with a multiyear supply contract with a customer that is a significant source of business. The supply contract was negotiated by sales and marketing when the customer was financially sound. A year into the contract, the customer’s cash flow is negative and it is not honoring the 30-day invoice terms. The account is now 45 days past due. The customer has placed additional orders, but needs the credit because a…