Avatar, Lehman and a Bounced Check

Last month we received a call from The Daily News. In researching Lehman Brothers’ bankruptcy filing they discovered that Avatar New York, was one of companies that would not receive payment for work performed. As the last check had already bounced I wasn’t expecting much.

I was surprised to receive a call the same day form CNBC asking me to be a guest on their ‘Power Lunch’ show scheduled for the next day, Monday.

Although it was a short segment the show highlighted the fact the failure of an institution like Lehman Brothers affects both small and large companies. It is interesting in 6 years of business that Avatar New York has never been a recipient of a bounced check and the very first one happens to come from a company like Lehman’s. A good lesson to learn for small business is that it is important to collect any and all payments when they are due, regardless of the perceived stability of the company.