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Business Credit

| September 01, 2004 | Clark, David | COPYRIGHT 2004 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

The mid-90s were very good to Emmanuel Lagos and his newly formed business, Phone Accessories Inc. (PAI), a manufacturer of cell phone accessories--leather cases, belt clips, etc.--based in Baltimore. The cell phone industry was riding a tremendous growth wave and business was booming; PAI could hardly keep up with the demand, even though sales were limited to just the surrounding Mid-Atlantic region. As Manny looked ahead, he was excited by the prospects for expansion: first up and down the East Coast and then westward; just thinking about it brought a smile to his face.

Unfortunately, as the '90s wound down, demand began to soften while the competition ...

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