Referring to “Trump stiffed me on $100G deal on pianos” [Opinion, Oct. 1], piano salesman J. Michael Diehl’s problem was not with Donald Trump, it was with his own substandard lawyer, accountant and training in business management.
When a business extends credit to a company, it is effectively taking the same risk as an equity investor. Diehl’s attorney said the Trump name was sufficient grounds to extend credit in lieu of credit risk analysis.
Further, basic accounting dictates that when a debtor makes a partial payment, the unpaid balance remains on the books as a receivable. Monthly billings should be generated and collection practices applied until the balance is paid down to zero.
This is a case of someone making a bad business decision and looking for someone else to blame — especially now that, 27 years later, it’s accepted as part of a fashionable witchhunt against Trump.
For Newsday to cherry-pick this shallow opinion and dedicate a quarter of a page to it is disappointing.
Vincent Cristiano, Ronkonkoma
Editor’s note: The writer is a former bank financial officer. He has taught business management courses.