50-50 HINDSIGHT DEPT.
A tip for anyone out there planning to do business with anyone: Pay for a background check on that person's name and business name immediately.
I used KNOWX.COM, (after I'd already had to file a lawsuit, unfortunately) but there are any number of online services that'll give you a public records search for $45-$65.
Take it from someone who learned the hard way: It is money well spent to learn ahead of time that a potential business partner is financially strapped, has leins or judgements outstanding, or is misrepresenting the worth of their business.