Everyone loves the big customer who puts an upward kink in your sales and gets you buzz in the marketplace. But what do you do when your credit manager tells you that your prospective customer has a spotty credit record and chronically pays everyone slowly?
You can still make the sale, and keep your profits intact, by integrating your sales and credit decisions. What does this mean? Dealers know their cost of goods well and understand how to give price breaks and still make positive gross margin. However, most dealers ignore costs of credit and how those costs can vary widely by customer.
This article, written by BlueTarp CEO Scott Simpson and featured in Merchant Magazine, provides helpful advice for understanding how slow pay impacts your profitability and cost of credit, and what you can do upfront to protect your profits.
About the Author
Scott is president and CEO of BlueTarp. He has spent the majority of his twenty year career in financial services helping businesses grow more rapidly through the effective use of credit.More Content by Scott Simpson