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Article: Changing hands: when it comes to managing business credit, dealers must be able to keep the capital flowing downstream to customers while also bearing the brunt of today's tougher banking terms. (Cover Story).
- Article from:
- Prosales
- Article date:
- June 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 Hanley-Wood, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The construction supply business depends on the flow of credit to keep the wheels of business turning. Contractors and builders customarily buy on credit, and most of the dealers that extend it just as routinely rely on a bank line to cover inventory and operating expenses during the inevitable ups and downs of cash flow. Managing this process today takes diligent controls to ensure that all the moving parts are synchronized into a finely tuned machine.
However, today the squeaky wheel doesn't always get the grease, and the days of sealing deals with a handshake are all but gone. Although most dealers try to retain the personal relationships that have ...
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