[Ninjak8051]

Let's say you own and operate a small independent hotel, some techies from San Francisco offer to perma-book every room for the next three years solid for some fraction of your normal room rate. You keep operating your hotel, the techies send you regular guests (and handle all payments), and at the end of the month you get the same guaranteed income whether business was bad or good.

All goes well for a while but the techies start slipping on payments. First it's a few days, but sometimes they miss by a few weeks, so you schedule a call with the VP to straighten things out. Eventually they get a few months behind, you're fed up and demand immediate payment or you will stop lodging their guests (who have paid the techies, but somehow the money has not made it to you). CEO calls to straighten things out, promises to wire the money by Friday, just please please please don't evict any guests. You agree, but Friday comes and goes with crickets, and on Saturday morning you kick everyone out.

[Ninjak8051]

The techies are insolvent but not yet bankrupt. They have been running their business off accounts receivable (which rightfully belong to you) for months. There is no way to work things out, the money isn't there. You have been hosting their guests and you will get back pennies on the dollars you are owed, years later. Time to pull the plug.

[wbl]

What reputation? These people don't know you.

[michaelt]

If you've had Silicon Valley techies book all your rooms for several years, and it's their logo on the side of the building, and all your customers have booked with them? You don't have a reputation.