We were ready to fund a High Volume parts-retailer $300K.

Merchant checks out fine but owes $229K to a Trade Partner. Bank wants to kill the deal. Here are my questions:

**For a High Volume merchant doing $8M a year, is this abnormal?

** Just because they owe, does that necessarily mean they are in bad standing? Merchant says OF COURSE he owes it -- but he makes regular payments and is not behind. This just happens to be his level of debt with this Trade Partner.

Trade Partner says they do not intend to terminate the relationship. Merchant is collectible, just a little slow.

What frustrates me especially is that banks are of course especially vigilant on these deals- but if merchants who produced such high volume were so clean, they wouldn't need our product. What do the banks expect when it comes to a deal this large??