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I'm hearing that companies are facing sudden cash flow problems, where due to the outbreak orders are cancelled last minute en masse. these companies guarantee
by unlinked_dll 7y ago
I'm hearing that companies are facing sudden cash flow problems, where due to the outbreak orders are cancelled last minute en masse. these companies guarantee 50-100% refunds no matter when you cancel, so orders are sitting on loading docks that have been paid for with no one to go, and the revenue has suddenly turned into costs.
I have no idea why markets turned higher today. Shit is hitting the fan. Work is being stopped, layoffs are going on across small margin businesses, and people are not going to have money to pay their rent or mortgage in two weeks. And the only thing I've seen from the Government is talk - zero policy, zero decisions.
And this isn't just your neighborhood cafes laying people off. It's companies up and down the supply chains and B2B manufacturers that don't operate on high margins and don't have vast reserves of cash.
When the quarantines and shutdowns half, it's going to be a bloodbath of consolidation.