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Old 01-04-2016, 09:40 PM   #2
Sean J Hunter
Member Sean J Hunter is offline
 
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Join Date: Apr 2009
Location: North Shore  New Zealand
Posts: 805
Re: Community transparency? Necessary?

That's a tough one,

Just cos a business has a poor balance sheet, doesn't mean it's not a successful operation. However the city calling implies they're not handeling their negative balance sheet well...perhaps. Alot of this information is second hand...

it could be as simple as the leaving of a partner, and them taking their capital with them, left the business in a capital hole, that' they're digging their way out of.

You'd need alot more information than this to really decide if the company is trading reclessly, and even then, if the consultancy service they'e providing are valid......those you can't teach.

It's pretty common for small business to be under capitalized, and to borrow working capital from its creditors from time to time....not saying it's a good idea...just saying it's pretty common, and some would even say a necessary evil of running a small business.

What where your questions exactly...

Sean
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