The phrase “extraordinary times” is an understatement when it comes to describing these days as each of us is forced to focus on new ways to achieve personal and business survival. As law firms attempt to envision a path through this crisis, a new working relationship with vendors should be considered as part of the solution.
When thinking about communicating with your vendors, there are two general approaches our clients are taking.
- Some are proactively starting conversations, discussing if and to what extent vendors are willing to cooperate with a program that defers some or all payments.
- Others are merely submitting reduced payments with a statement describing the firm’s intent to catch-up.
The approach taken is based, in part, on the firm’s projected liquidity challenges, and on a vendor by vendor basis.
A vendor or creditor that deserves special attention is the firm’s banker. We recommend a face-to-face visit (these days this means Zoom, Skype or some video conferencing platform). Not only is your banker a potential source of additional funding, but they typically have some form of a security interest in firm assets. Best to engage your banker early in a dialogue around where you are, how the future looks, and how you can work together to ensure a profitable long-term relationship.
For those interested in a conversation about leading during crisis, we’re providing a no-cost 30-minute consultations as long as our schedules permit. Send us a note to either email address below:
Roger Hayse – Rhayse@HayseLLC.Com or
Andrew Jillson – Ajillson@HayseLLC.Com
For more of what we have written on this topic click here.
Stay safe!