28.08.2013
Credit circle for cranes and access
Top Service is launching a specific Credit Circle for the crane, access and heavy equipment rental industry in the UK.
The move follows a successful initial meeting of interested parties at Vertikal Days earlier this year and is co-hosted with the P&A Partnership. The concept is already working successfully in other market sectors, and allows rental companies to confidentially exchange information - through the circle - on delinquent customers and rogue traders, and thus help prevent the exploitation suppliers of concurrent non-payments.
The first meeting is scheduled for 19th September in Birmingham. The meeting is free to attend and includes a buffet lunch.
Diane Dean, customer development manager at Top Service said: “The credit circles we are involved in for other industries are an excellent source of information and I am so pleased to be bringing this opportunity to the plant, crane and access industry. We would welcome anyone to the meeting who thinks they can benefit from a credit circle, and I am more than happy to talk to any interested parties who may require further information.”
Vertikal Comment
We have highlighted the issue of rogue traders exploiting the easy credit and competitive nature of our markets in editorials and comment pieces. We fully support this initiative by Top Service to facilitate a central information pool of information on the worst payers and dishonest traders and hope that companies will support it for the benefit of all.
All too often a rental company collecting a machine after cancelling the rental contract through non-payment sees another rental company dropping a new machine off its place and on it goes. Ending or even reducing the losses from this type of exploitation can help the industry stronger and more profitable, without a change in utilisation or rates.
Sherm
This is a common challenge to many industries. It happens when a client knows they cannot pay the rent they will order a machine from another vendor.
I saw the same crap in institutional food distribution and in office coffee service I managed. A customer who could not pay up their account would switch to another vendor. Drivers and account reps were trained to watch for this condition. The common signs were returned goods for credit, smaller orders or more frequent deliveries on smaller invoice totals. I worked the collection desk for a distributor that had accounts receivable of $190,000 USD. I had pretty good success because I had previously worked for some restaurants that had cash flow problems. The credit circle runs on one side of the business vehicle and the other wheels are called the vicious circle of cash management. Sometimes price fixing can stop fraudulent trading and buyers who shop only by price and have no other standards to operate by.