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Can anyone explain this behavior? These lawsuits must be expensive, even if they end up settling for a reduced amount. It's hard to view this as more than incom
by 8organicbits 3y ago
Can anyone explain this behavior? These lawsuits must be expensive, even if they end up settling for a reduced amount. It's hard to view this as more than incompetent management.
- MattGaiser 3y ago1. Assumes everyone sues. 2. Assumes everyone gets paid in full. 3. You can use the cash for other things. It is actually extremely common to pay suppliers late. My family used to be in the food production business and grocers routinely just didn't pay or changed payment terms until you hassled them sufficiently, as then they could have more cash on hand for other things, collect interest, etc. https://archive.is/0Rxap https://archive.is/0Rxap So say that Twitter is having cashflow problems. You can just kick the can down the road by not paying bills and plenty of suppliers will take it, thinking they have no choice. By doing this, they can borrow for free. Another good article on this: https://www.wsj.com/articles/delaying-payments-to-suppliers-help-companies-unlock-cash-1530178201 https://www.wsj.com/articles/delaying-payments-to-suppliers-...
- ZeroGravitas 3y agoThis gets asked repeatedly here. The best answer this community has come up with, that I've seen, is that if you think your business is about to collapse into bankruptcy, there's no point paying bills. This just raises more questions though. So random stupidity seems to fit better.