Loss of sales. Over the years, they turned down sales due to high credit risk, with “tremendous opportunity lost.” “We’d say, ‘We want this sale, but at what risk? If we’re not getting paid, it doesn’t matter how much the sale is.” Lorber says. When a customer would hit their credit limit, it would also put the account manager in a bind, unable to sell them more materials.
Unpleasant customer experiences. Getting the customer set up with credit, with credit insurance, public bonds and trade references, could be a long, drawn out process. This sometimes created an unpleasant experience for J Lorber’s customer. Not to mention the awkward conversation if they weren’t able to extend terms after all.
Chasing down payments. When J. Lorber would extend payment terms, some contractors would pay, and some wouldn’t. There was always the possibility of having to chase down payments, a less than ideal scenario that does nothing to help customer relationships.
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