UmbrellaOne is always committed to being accountable to both our clients and service partners. Even when it comes at a cost.
We recently had a client suddenly file for bankruptcy. This particular client represented a significant amount of work for us and although they always paid their invoices in a consistent and timely manner, we still have a considerable number of receivables that will likely remain unpaid for a long time, if ever paid at all. As with all businesses, retail multi-site maintenance comes with its risks. This is definitely one of them and while we endeavor to avoid these circumstances, it is an unavoidable. The upside is that it’s an opportunity to prove the type of partner we are.
We can’t control what happens with our client. We wish them a positive outcome during these difficult times and are still 100% committed to assisting their store locations when they emerge from their court proceedings. That’s about all we can do for now. However, we can live up to our guarantee to our field service partners and make sure they still receive payment for the services they performed and completed at our request. They took the work order request from us and assuming the work was completed in a satisfactory manner, we hold ourselves responsible for their payment. We don’t have maintenance service contracts that mitigate our risk by making payments contingent on our receipt of payment. Although this platform exists in our industry, it’s not fair and it’s not the way UmbrellaOne operates.
Our client filed this past week, again unexpectedly. With that in mind, we’re proud to report that every commercial handyman, electrician, plumber or cleaning company that assisted us with this account, will all still be paid Net 30. And while this is not a success in terms of finance, we do look at it as a chance to show the hard-working contractors who partner with us that they can work with us and have confidence that we respect them and genuinely value their efforts.
We’re not looking for a pat on the back. Just reinstating the recognition of our end of the ‘deal’ that we pledged to all of our field service partners and contractors.