This looks pretty simple. And I’m familiar with the industry.
Client deals with local branch
Local branch knows clients and their business
Operating line is established with x rules
Inventory determines operating limit (very common)
Account moves to the city
Manager margins the account differently as he pigeon holes business with other manufacturing businesses
Client says no, no. This is not what we have been doing.
Bank says you must
Client says pound sand
Bank calls the debt.
Generally a client that is desperate for the borrowed funds does not tell the bank to get bent.
However, what I do not understand, is why a bank that has a client with that kind of liquid cash would quibble over inventory. But I’d guess that that money was invested elsewhere.
Last edited by pathfinder76; 05/26/20.
