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Posted On: 03/18/2019 10:15:29 PM
Post# of 40990
I've always thought that the high A/Rs could be related to units that our "customers" are contractually obligated to "take" monthly, but, they are not selling at the dealerships. They don't sell and get paid and we don't get paid.
As an example, ABC dealership signs with Steve to ship 20 units a month, so, we ship 20 units a month. If they sell 5, we get paid for 5 and an A/R for the other 15. Might have been the only way that Steve could "structure the deal" to get them to sign.
But, again, the Communication is so poor that we are always trying to "connect the dots" and "fill in the blanks" - with little exact info.
Didn't Steve say that he would never do this type of Financing again?
As an example, ABC dealership signs with Steve to ship 20 units a month, so, we ship 20 units a month. If they sell 5, we get paid for 5 and an A/R for the other 15. Might have been the only way that Steve could "structure the deal" to get them to sign.
But, again, the Communication is so poor that we are always trying to "connect the dots" and "fill in the blanks" - with little exact info.
Didn't Steve say that he would never do this type of Financing again?
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