Nov 30, 2013

Custody & Collateral

Custody & Collateral

One of the biggest headaches for a heavy duty shop owner is dealing with customers who don’t pay. In a perfect world, we would extend everyone credit and everyone would pay in a timely manner. We would trust everyone. Unfortunately, we’re not quite there yet.

Protect Yourself with Collateral

If a walk-in customer requests a repair, you’re usually happy for the business. But you must take steps to protect yourself. You can take a prepayment–Comcheck, Telecheck, or a pre-authorization on the customer’s credit card. But your ultimate trump card is custody of the unit itself. Laws vary by state, but generally you are able to hold a unit in lieu of payment. Your custody of the unit constitutes collateral for the repair.

Trust But Verify

As much as you want to trust an honest face, remember we don’t live in that perfect world. As Ronald Reagan said, Trust but Verify. Don’t open yourself up to be burned.

Hold Truck as Collateral

Worst case scenario, you have to hold the unit for payment. Depending on how the customer does business this could last weeks or months, and you’ll have to file for a mechanic’s lien. But in the end, you will almost always get paid.

Custody & Collateral are foundational principles of Fullbay. The software was designed to match a real-world workflow of a unit arriving, being checked in, and not being released after the complaint/cause/correction are resolved until payment in full has been received, or until someone authorized–like the shop owner–okays the release.

Fullbay Bolts Collateral Into Your Shop Life

Request a demo here to see how bolting the principle of collateral into your every day work will protect you and your shop.

Jacob Findlay