Chapter 7 - The Credit Line That Wouldn’t Stop Growing
Commonwealth produced records after receiving proper requests from the trust’s accountants.
Brenda’s bank appointment was connected to a proposed restructuring of Kendra’s company debt.
Hart Strategic Consulting owed:
$312,600 to the family trust,
$184,000 on a bank line,
and roughly $96,000 to vendors and business cards.
The company still had revenue.
It also had a serious cash-flow problem.
Kendra had expanded too quickly after signing one major healthcare client.
She hired staff.
leased expensive office space,
spent heavily on branding,
and assumed the client would renew.
It didn’t.
She covered the gap with debt.
“Why didn’t she shrink the company?” I asked Richard.
He looked tired.
“Because she kept telling everyone the next contract would fix it.”
That sounded familiar.
Mom’s bank meeting concerned a new $500,000 consolidation facility.
Commonwealth wanted stronger collateral.
Kendra had proposed a secondary security interest connected to the Hart trust’s retail property.
Richard had refused.
“Can she do that without you?”
“No.”
“Then why was Mom meeting the bank?”
“That is what I would like explained.”
Brenda held no authority to pledge trust property.
She did, however, have limited authority to approve certain family administrative expenses and communicate with outside vendors.
Apparently she believed that made her influential enough to change the bank’s mind.
I confronted Kendra with Lauren present.
“Did you tell Mom to leave Lily on the bench?”
“No.”
“Did you tell her the meeting couldn’t wait?”
Kendra looked down.
“Yes.”
“Why?”
“Because Commonwealth’s regional credit officer was only there that afternoon.”
“So reschedule.”
“I was about to miss payroll.”
I stared at her.
“Then tell your employees the truth.”
“You think it’s that easy?”
“No.”
“I have five people depending on me.”
“Lily depended on Mom.”
Kendra flinched.
“That isn’t fair.”
“It’s exactly fair.”
She began crying.
Years earlier, that would have changed the conversation.
This time I waited.
“What did Mom promise the bank?”
Kendra wiped her face.
“Nothing.”
“Then why are you scared?”
She looked toward Lauren.
“Because Richard’s going to see the email.”
“What email?”
Kendra closed her eyes.
“The one where Mom said you would support the collateral if they gave us another week.”
I had never agreed to anything.
May you like
My name had been used again.
Only this time, someone outside the family had it in writing.
