The contractor moved on and the account did not

A contractor takes material on account for a project. Payment follows the project's own cash flow, which follows the developer's. When that stalls, the supplier is the last to know and the first to be exposed.

Limits that are not enforced are not limits

Where a limit is a number in a file rather than a check at the point of supply, material continues to go out on the strength of the relationship. Nobody makes a decision to exceed it; it is simply never consulted.

Project as well as customer

A contractor running three sites has three different risk positions. Aggregated to one customer balance, a failing project is masked by two healthy ones until it is not.

The conversation is easier early

Raising exposure at two lakh is a supply conversation. Raising it at twenty is a recovery conversation, and the relationship rarely survives it. The difference is entirely when someone looked.