l tend to agree with you,this is and has been a producing company that just grew faster than their cash flow. The one way many companys in cash flow trouble operate is off their workers comp. and employees witholding taxes.
It is justified if you can cover before the payments come due,and even after,the govt. may take a month or two to catch up,when they do they will freeze all accounts and you have to send your bookkeeping dept.to the IRS and then to the workmans comp.carrier,write checks for back sums owed before they will unfreeze the accounts.When this sort of thing happens,your old bank usually will not want your account back due to a lot of extra work and other banks will not to help either.
l have seen this happen to a lot of contractors in Calif.even doing govt.work the draws can take up to six months to post,it happened to me once and l almost had to shut down for awhile,glad l had friends and credit.
Virg
