44 minutes | Jun 22nd 2018

64: Credit, Cash Flow, And Collections with Thea Dudley

 If you are going to grow a successful roofing business, you’re probably going to need a credit line with a local material distributor. In today’s interview with Thea Dudley, we’re going to get into how your supplier can help. Thea has over 30 years of credit and collection management experience in the construction industry. She writes a credit advice column for ProSales Magazine and has presented educational sessions for numerous trade organizations.

What you’ll hear in this episode:

  • Thea’s background, growing up as the teenager tagging along on her dad’s construction site
  • The problem and the trap in “shuffling” the money around
  • The confusion in setting up a company and handling the money issues
  • The problem when you push your bookkeeping off on someone else because you don’t want to be bothered with it
  • The problem with working capital and cash flow
  • What Thea wants to see: a financial statement that shows payroll, costs of goods and services, and if jobs are being underbid
  • Why trade suppliers are a much cheaper loan than a bank, but they still have required paperwork
  • Only half of the contractors who ask for discounts actually take them
  • Things a credit person can teach you
  • Liens, pre-liens, and lien waivers and why you should explain it all up-front
  • The automatic process of lien notices
  • Why you need extra security against the bad things that MIGHT happen
  • Why you should have a relationship with your credit manager
  • How Thea can help when rough times come
  • Why contractors are afraid to ask for the money
  • Why you can’t use “hope” as your credit tool but must hold people accountable
  • Processes that need to be in place about a payment schedule
  • Why you must focus on indemnification and how you will get paid
  • Keep emotion out of money conversations
  • Document every conversation: “If you do end up in court, best documentation wins.”

Resources:

SRS Distribution or call Thea at 469-424-2258

Need Help Answering the Phone?

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