Credit

[spwilkins]

When a credit customer is a slow paying customer or over the credit limit who calls the customer - the office of the parts department? Also, do customers get cut off when over 30 days? If the parts department knows they are over 30 days, does the parts counterman mention it but still make the sale? We are starting to have problems, and I dont mind loosing a bad customer over credit issues, but I dont want to kick our good customers while times are slow.

[GMRAISED]

Parts calls the customer in our dealership to see if it is ok to pick up a check If it is a good customer he will tell you about when to expect a check, maybe express a problem with a bill he is having trouble with and ask for some further information. If the customer is not a good customer or questionable he is put on COD till he is caught up. He may then be reinstated as a charge or cash only depending on how hard it was to collect

[This message has been edited by GMRAISED (edited 11-10-2005).]

[Old Irish]

Slow-pay is a lot different from "no-pay".

If a "slow pay" has a decent history, stays in communication, and *regularly* sends sends *something*...even if it is late....we'll usually work with them. When they won't return calls or answer the phone, then you've got trouble.

Usually out acct's rec'bl lady makes the first call or two. If things start getting bad and/or there is no response, it is up to the dept manager to collect the debt.

These situations have to be analyzed case-by-case.

Besides business accounts we have quite a few customers with personal/non-business charge accounts with us. Ironically, it is often our town's most "prominent" citizens who tend to neglect paying their accounts !

Good luck
DD

[wellzy]

I (PM)personally collect the outstanding balance. We do give some slack to our better customers. There are a few customers who we had trouble collecting from that we left on COD. I just think it is better for parts to collect, because we know these customers and there may be special circumstances.