Slow pays

[cdhowell]

I do a lot of aftermarket work for the local dealerships and body shops. Most are 15 day net terms but others are getting stretched out pretty far. 10th of the following month, lost invoices, amount billed is less than estimate, no one is here to sign the checks. That PO was closed and you need a new number. The crazy excuses just keep on coming.

 

So my question is how do I break this cycle and encourage prompt payment? I do not want to discount a lower than normal Profit margin. And setting late fees may turn business away. Unfortunately it is a big part of my business.

[CMillet86]

I deal with it some myself, Biggest thing is no Net terms anymore, you pay with a credit card or check when you pick the vehicle up, I don't care if it's a huge dealership or not. If you can't hire techs competetant enough to do everything in house and need me to do stuff, these are the terms.

[mmotley]

Agree, I have 1 customer who I let charge a balance and it's been an ongoing nightmare. Luckily his car broke down last week and he towed it to me. I explained to him that we could not do any work until his balanced was paid in full. It's probably gonna be 2 months before he has me paid off, but it's the last time I'll let someone charge a balance with me, including dealerships.

[kars]

I deal with it some myself, Biggest thing is no Net terms anymore, you pay with a credit card or check when you pick the vehicle up, I don't care if it's a huge dealership or not. If you can't hire techs competetant enough to do everything in house and need me to do stuff, these are the terms.

Ditto. Bring a check or credit card at time of pick up.

[CMillet86]

Yah In Todays buisness world, there is no reason for them to not use a credit card on transactions under a certain amount.

[autorepairuniversity]

I stopped accepting personal checks about 1 1/2 years ago. Unless it's someone I feel comfortable taking a check from. After one really big delema, I learned that writing "bad checks" is almost a legal way of stealing. Most of the time it's not worth going to court over. Sad world we're living in.

Sent from my Chromebook 11 Model 3180 using Tapatalk