[Doc]

If you can't charge customers until you ship, and you have a large number of orders that are expensive to make, you need the money to be able to order all the materials and cover the payroll to build and fulfill those orders so you can ship and charge the customers. If you don't have the money and can't get the credit line, you can have the situation where you have a product that's selling and has orders and you can't fulfill them.

If anybody in your supply chain has a problem and now you suddenly can't get a key component, you've also suddenly got a problem. Now you have to find another source and the length of time that takes can be fatal business-wise if you were under-capitalized to begin with, because your overhead still continues each month eating away at your reserve.

I don't see anything underhanded taking place with the Pfadt situation; just an unfortunate situation that didn't work out.