The Combine Forum banner

161 - 180 of 219 Posts

·
Premium Member
Joined
·
45 Posts
Sure, they have had use of his money for 2.5 years. But even now, 2.5 years later, why not build the scraper and preserve the profit margin on it? I assume Leon would not be selling these things at a loss? Maybe they had no intention of doing either, but if push comes to shove eventually, why not build the scraper rather than return the money?
 

·
Registered
Joined
·
351 Posts
A fellow I know whom is in lending told me about zombie companies. Try to appear they’re accomplishing a means to an end but in reality they’re shuffling money around and have no means of creating anything. Wonder if this particular company is in the same boat. They’re done but they don’t know or admit it.
 

·
Registered
Joined
·
38 Posts
Thanks to Kevlar, Leon has called me with a delivery date for my scraper.
I’m still skeptical about it actually coming but ill keep you guys posted.
 

·
Registered
Joined
·
932 Posts
Thanks to Kevlar, Leon has called me with a delivery date for my scraper.
I’m still skeptical about it actually coming but ill keep you guys posted.
Do you think you’re better getting/waiting to get a scraper from them or getting your money back and buying elsewhere?
 

·
Registered
Joined
·
38 Posts
Do you think you’re better getting/waiting to get a scraper from them or getting your money back and buying elsewhere
Money and buying elsewhere would be a great idea!
Except after 6 months They won’t send my money back either.
 

·
Registered
Joined
·
932 Posts
Money and buying elsewhere would be a great idea!
Except after 6 months They won’t send my money back either.
Was wondering if there’s a mandated time limit/window where they’ve got to give you the option of getting your $ back, ie if it’s not delivered within 3months you’re legally allowed to demand $ returned(?)
I suppose a delivery date is a start; hopefully it’s in the near future and they deliver or you can trigger getting the $ back instead. @ Kevlar may be able to PM you his last suite tricks and get you $ instead(?)
 

·
Registered
Joined
·
3,157 Posts
Who's willing to bet that to some degree they have found themselves into what I refer to as a Bernie Madoff situation, they need the next customer to come along to pay up front so that they can pay back or have the funding to build the scraper etc for the previous person and so on down the line and eventually it all comes to a spiraling end if the new customer base/cash injection dries up, like a juggling act trying to keep all the balls in the air. Of course I could be 180% wrong but that is what I have pictured in my mind.
 

·
Registered
Joined
·
932 Posts
Who's willing to bet that to some degree they have found themselves into what I refer to as a Bernie Madoff situation, they need the next customer to come along to pay up front so that they can pay back or have the funding to build the scraper etc for the previous person and so on down the line and eventually it all comes to a spiraling end if the new customer base/cash injection dries up, like a juggling act trying to keep all the balls in the air. Of course I could be 180% wrong but that is what I have pictured in my mind.
Exactly what I had in mind; and only those loud enough/squeaky wheel enough are getting any semi-satisfactory resolution.
 

·
Registered
Joined
·
3,831 Posts
Discussion Starter #171
Was wondering if there’s a mandated time limit/window where they’ve got to give you the option of getting your $ back, ie if it’s not delivered within 3months you’re legally allowed to demand $ returned(?)
I suppose a delivery date is a start; hopefully it’s in the near future and they deliver or you can trigger getting the $ back instead. @ Kevlar may be able to PM you his last suite tricks and get you $ instead(?)
As soon as they fail to deliver on the delivery date on the contract or sales invoice, they are in breech of contract and you can request your money back.
 

·
Registered
Joined
·
3,831 Posts
Discussion Starter #172
There are a couple of old phrases that are coming into effect here:

1. Your past will come back to haunt you.

2. Oh what a tangled web we weave, when we practice to deceive.
 

·
Registered
Joined
·
3,831 Posts
Discussion Starter #173
Thanks to Kevlar, Leon has called me with a delivery date for my scraper.
I’m still skeptical about it actually coming but ill keep you guys posted.
Did Ms. Wichers get a hold of you?
 

·
Registered
Joined
·
4,229 Posts
You see why I mention it odd they didn't supply the scraper. Expect the manufacturer to make 20% margin on a product so cheaper for them to supply the product rather than cash value. Unless they are running full production shifts making higher margin products. Sounds unlikely. And the scraper design is nothing new so they aren't wanting out of something they promised but can't build.
So you start speculating on why things are this way.
I was going to post earlier about the mentioned plant expansion, now it might make more sense. One way a company can trigger credit is to do a capital expansion where the lender will provide payment based on milestones. So a building expansion could trigger say 50% payment once the shell is up even though only 10% of the cost is incurred. It's not something you need to watch regarding financially sound companies but companies pulling under handed business deals and desperate for credit may possibly build a structure with no intention of using it.
So the scenarios are that either Leon's is incredibly busy and in need of an expansion and found it a better proposition to pay Kevlar than supply a product they built many of (and being 2 years late was just an oversight) or Leon's is going the way of a number other defunct operations while playing games that leave farmers the victims in the process
 

·
Registered
Joined
·
3,831 Posts
Discussion Starter #175
Who's willing to bet that to some degree they have found themselves into what I refer to as a Bernie Madoff situation, they need the next customer to come along to pay up front so that they can pay back or have the funding to build the scraper etc for the previous person and so on down the line and eventually it all comes to a spiraling end if the new customer base/cash injection dries up, like a juggling act trying to keep all the balls in the air. Of course I could be 180% wrong but that is what I have pictured in my mind.
That's called kiting (spelling?), where money is taken from new sales to cover costs to supply old sales.
 

·
Registered
Joined
·
3,157 Posts
My understanding of Kiting is more the misrepresentation with the use of a banks payment instrument such as a cheque being written when there are no funds in the account to pay for it but then writing a second no funds cheque from another bank to cover the first and a whole game of creating funds out of nothing and I can't see those balls staying the air very long !. I don't know what the term is for what Leon's may be doing but they took your funds which certainly were legit and then .... well then what did they do, stuff it into a mattress and sleep on it for a good few years rest ?, probably a slightly different angle then that. Sooner or later it all will all become apparent and sadly my guess is a few farmers and suppliers will be holding a bag and not one that contains gold either.
 

·
Registered
Joined
·
3,831 Posts
Discussion Starter #177
OK, could be, that was just from the Cole's notes version that my lawyer gave me early on, I may have misunderstood it somewhat. Either way, it's not in the Good Business Handbook. I'm curious to see how this whole story unfolds, and on what scale, from what I am seeing, it is more than just a few people. And after seeing the added degree of difficulty being across provincial boarders was like, I can only assume across international boarders would be even more problematic. I haven't heard of any stories yet from other countries.

I understand that anyone running their own business will at some time in their life encounter financial difficulties, and sometimes bankruptcy is inevitable, but at what point is what they have been doing considered criminal activity. I know just one case doesn't qualify, 2? 3? 20? Where is the tipping point?
 

·
Registered
Joined
·
1,049 Posts
I had a quick look a Leons Facebook web page yesterday.
Not one neg comment on there.
How do they do that?
Just wipe them off daily?
Maybe its all I can see because I'm not on facebook?
I dunno
 

·
Registered
Joined
·
66 Posts
Who's willing to bet that to some degree they have found themselves into what I refer to as a Bernie Madoff situation, they need the next customer to come along to pay up front so that they can pay back or have the funding to build the scraper etc for the previous person and so on down the line and eventually it all comes to a spiraling end if the new customer base/cash injection dries up, like a juggling act trying to keep all the balls in the air. Of course I could be 180% wrong but that is what I have pictured in my mind.
Exactly my thoughts
 
161 - 180 of 219 Posts
Top