Quote:
Originally Posted by jimmycooper
The way I see it is that if someone has even the slightest bit of difficulty in making a payment, odds are that it will likely be even more difficult for them to make a larger payment at some point in the future. Not only because of the likelihood that whatever debt woe curing catalyst they're hoping for will never materialize but because from a purely psychological standpoint it becomes easier and easier to screw people over once that cherry gets popped.
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This - it is very unlikely that someone gets "back on track" after not paying suppliers. There are easier vendors to screw first, and they will have been screwed already. By the time someone stops paying revenue producers, they are in bad shape. Unless it is a division of a successful firm or a small enough that a capital injection helps it will slowly go away.