Winn Solicitors advise bodyshops and dealerships on how to best protect themselves

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Bodyshops and dealerships need to protect themselves from the collapse of accident management companies.

The credit ratings of several of the main accident management companies/credit hire companies have been extremely poor in recent months. Drive Assist have fallen into administration leaving many bodyshops suffering significant bad debts and cash flow issues. Several others are on the brink with further credit downgrades putting them into the “E” and “F” categories which are just above the “going into administration category”.

The first issue on which any bodyshop or dealership should decide in appointing an accident management company or accepting work from an accident management company is their credit rating. There is no point in doing work if you are not going to be paid for it, no matter how good the deal on the table appears.

The same applies to where you already have an accident management company whose payments are taking longer and longer to receive. We have witnessed a number of repairers who wanted to change to our accident management company but were frightened to do so in case their existing accident management company which had poor finances stopped their payments. They are suffering from their period of delayed payment getting longer and longer and thus making it harder to leave and start with a good credit rated accident management company. The best option is to check the credit rating before appointing an accident management company and if your accident management company’s credit rating deteriorates get out as soon as possible as it is unlikely to improve once it is on a slide.

Winn Solicitors and its associated credit hire organization, On Hire are A+ credit rated meaning you can be certain to receive your funds. Winn Solicitors guarantee the payments to be made by On Hire giving further certainty of payment.

Now is the time to make the move to Winn’s or other A+ credit rated accident management companies who will provide this protection. As the credit ratings in the sector deteriorate there is a likelihood of other high profile collapses in the near future.

(image courtesy of Surachai/ freedigitalphotos.net)