Warranties From A Company That Can't Turn a Profit
It would seem people these days are not doing enough of the right kind of research on some companies that do home improvements or renovations to their property. They log onto Angie's List or Facebook and that is all. These companies promise longer than state mandated warranties on their work (sometimes) and the potential homeowner feels vetted. This is where the trouble begins.Ted "The Wolf" Strzelecki
Some of these "well known" companies are in such dire financial situations that one would wonder how the management sleeps at night (Or being investigated by CONGRESS!) . These larger well known companies are often publicly trade able or otherwise known to be listed on the public stock exchange. This provides a great source of detail to the potential customer. If you would look at their balance sheet you would see they continually have to borrow funds at huge unfavorable rates just to keep the doors open.
Ask yourself this, "Do I want to be one of their customers when they miss their payments?" The answer: a strong confident no! So much is against a company from the very start and often most companies fail. Of the ones that do not only 15% actually grow and become more than just a living for the owner of the company. That's right 85% of companies only make enough money to pay the owner and just a couple of employees.
So how do you know if you are dealing with a company that is financially healthy? Simple. Just ask and gauge the response you receive. If it is a private company you cannot ever really find out unless you ask. Another way would be to ask to do a Dunn & Bradstreet on them. This is essentially a credit report on a company. As mentioned earlier, if it is a public company it is really easy. It's understandable that companies incur debt, but when a company has only been in debt and never turned a profit they are living on borrowed time. You do not want to be one of their customers either giving a deposit, in paperwork, under construction, permitting / final inspections, or especially in a lease agreement with them or in warranty with them when they file chapter 11. You will pretty much lose out. Their debt holders will become first in line to collect their funds leaving you holding the bag.if you leased anything from them like solar arrays someone will come and take them back from you. Imagine that?
This is a wake up call to everyone. Do some research on your prospective company. ASK, don't assume their shiny new trucks are a sign they are doing well, rather ask yourself "Are they current on making the payments on them?"
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