Separate Job Accounts Facilitate Contractor Collections
"Many distributors don't even know where the materials they're selling are going," observes Credit Manager Russell Bye
of Judd Supply Company, a Coon Rapids, MN, electrical materials supply contractor. "That means they have no mechanic's liens or bond rights." This article discusses the merits of separate job accounts, in comparison to regular accounts, which are not protected by liens or bonds and which involve materials subcontractors purchases to restock inventory for use on a number of small jobs.
- What specific information Judd asks of its subcontractors to determine risk and set credit limits.
- How often they check aging reports
- Why collection follow-up is important from a lien or bond rights standpoint
- How and why Judd interfaces with both general contractors and owners, as well as subcontractors, on payment issues, and the advantages of this strategy
- Unique ways Judd educates their subcontractor customers
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