Received this email today. A customer approaching the end of their trial period is demanding my financial statements. How should I respond?
As part of XXXX's supplier management program, it is essential that our Firm understands the financial health of our suppliers. To address this need and to comply with Federal guidelines on vendor management, XXXXX performs regular and formal assessments of our suppliers. It is critical that in this process, we receive your cooperation with full transparency.
In order to conduct the evaluation, please provide and forward the following information to XXXX.
- Company descirption, organization, location and number of employees, total number of customers.
- Current profit and loss statement and balance sheet (indicate if they are audited and by whom)
- Describe any current funding or sources of funding (IE institutional investors, bank line, etc)
We have included a formal non-disclosure agreement covering any non-public corporate financial information that you disclose."
This information should be provided in ten business days of receipt of this letter. If you don't respond, your company will be flagged as non-responsive and high-risk to the firm.
Update: I believe the federal guidelines are these ones: http://www.fdic.gov/news/news/financial/2008/fil08044a.html However, I don't see how my product makes me a "third party" putting their customers at risk. The product draws pictures for developers. It is not a banking instrument.