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The Importance of Transparency with Bankers & Vendors

 
  Arthur F. Rothberg, Managing Director, CFO Edge, LLC  
   
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  Article Summary  
Transparency, along with honesty and integrity, are essential for strong business relationships and business success.

When transparency is missing in valued business partner relationships, the negative effects can enter a downward spiral. For example, a business person may know receivables are past due, see that this is going to cause a slowdown in cash flow, and realize there is going to be a probable delay in making a loan payment that is due.

If there isn’t an effort to notify the company’s bank loan officer of this situation, potential negative outcomes range from loan officer concerns about the client’s trustworthiness to putting loan covenants at risk.

By contrast, transparency in the form of proactively reaching out to discuss bad news as well as good news can strengthen business relationships and promote collaboration on options for resolving the situation.

Business leaders in the Greater Los Angeles area can benefit from talking with a CFO services professional. A former enterprise CFO is well-versed in establishing and maintaining productive relationships with bankers, vendors and other valued trading partners.

An on-demand CFO can be helpful, too, in assessing root causes of challenges, as well as in negotiating or renegotiating fair and beneficial loan covenants and contracts.

  Open as PDF Open the entire article as a downloadable PDF (No form completion is requested.)  
     
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