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Credit and Collection

Number of messages: 3

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moneybags
Washington, United States

Hi there,

Does anyone now of association meetings for credit/collection managers or industry group meeting? I am interested in exchanging ideas to better formulate billing, facilitate cost disputes, ie labor. Leasing and payment terms is another issue. What are the most effective incentives to hold the best techs?
Hech, just about everything, because everything seems to be fair game in this business for ripe for a dispute.
My goal....spend time bringing in money, not adjusting it off.

Posted 16 Jul 2007 02:56 PM

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GuyM
Selangor, Malaysia

i have a concept not sure it's been implemented or introduce before. It's based on credit concept where the primary objective is to improve the payment receivables for those companies with large rental fleets. some of the challenges face by rental companies is the payment collection and most rental companies tend to provide credit term up to 30 days and most companies would only pay around 45 days from invoice date.

hence if the rental company were to engage a financial bank, they may be able to get the client to sign up for purchasing card program which is widely available from visa, mc or amex. the company that rent the trucks will then use the p card to make payment for the rental that it incurs and depended on the statement bill of the p card, most may be able to enjoy credit term up to 55 days from the actual invoice date

the rental company on the other hand, will no longer worry abt collection, credit control, travel to it's customer office to collect cheque nor even worry abt not receving cheque sent by it's customers.

this is because, with the p card program, the rental company will become the merchant for the bank and hence will charge the rental charges on the merchant terminal or transact thru web based merchant terminal. by doing so, the rental company will then have the payment paid by the bank directly into it's account around 2-3 days upon each transaction.

imagine the amount work proces that will be eliminated and all other cost associated with collection of payment as opposed with traditional collection and invoicing method

the set back for the rental company is the need to absorb the merchant fee that is charge by the bank which is somewhere around 1% - 2% depending on the size of it's rental fleet program and how it's negotiated

any comment

Modified 17 Apr 2008 00:38 AM
by poster.

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vijay_p
selangor, Malaysia

thats quite an interesting concept.... my company has about 100 units rental and we are constantly chasing our clients for money..

Posted 7 Dec 2008 02:44 PM

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