Cash is the lifeblood of your business. Risky deals can cripple your cash flow. Thats why controlling the dealerships collection of receivables is vitally important.
When times were tough, a lot of dealers and managers took promissory notes and hold checks. But if a check goes south and is returned, its very difficult to collect.
And as the receivable gets older, it becomes even harder to collect. It could end up being a write-off. That is intolerable: We work hard for the gross and then we give it away by writing it off because we cant collect.
Steve Lane, who teaches Financial Management at the NADA Academy, urges dealers to get better control over their vehicle receivable accounts, acknowledging that the longer an account goes unpaid the more difficult it is to collect. [Read more]The Article Controlling Dealership Collection of Receivables appeared first on Automotive Digest.