Surviving bankruptcy in the supply chain
Abstract: Healthy borrowers require strong supply chains. Initially, a weak supplier might mean increased costs, decreased availability of materials and production delays. Battle-weary, shrunken supply chains also can retard borrowers’ long-term ability to ramp up production when the economy improves. But, because lenders know how to evaluate financial performance, it’s important that they share financial analysis resources and techniques with their borrowers and educate them about the early warning signs of supplier insolvency. A sidebar discusses how auto dealers can thrive in spite of manufacturers’ woes.