I reported “A New Bank” on my September 9 blog. I thought it very important to tell our readers how a major vendor is addressing the financial difficulties facing the country, not just our industry.
Banks are holding so many dollars that they are charging a fee (rent?) for holding all this cash. Instead of renting their vaults would it not be more practical to lend this money to small business entrepreneurs? I know many solvent HME providers who with a new bank loan would be able to create many new jobs! With this extra cash they will continue the great service they give their clientele.
All the politicians are calling for jobs, more employment and getting people to be able to maintain the American way of life. This, too, was reported by me previously. I know there will always be a market for HME and with encouragement they would be the catalyst to start things back to normal.
In my blog, I said that I would ask Drive Medical for a brief explanation of their “New Bank” program. Doug Francis was kind enough to send me some answers and I am forwarding them for all to read.
“Margins in our industry have been under attack for many years. Reduced margins make it challenging for a business owner to measure the correct steps to take for the road ahead. The natural road to take is the one that increases revenue to offset the reduction in profits. For most businesses that means taking on more overhead (delivery techs, vans, space, inventory, etc.) and that can eat up cash. Drive Credit Company has introduced the new Cash Flow Options (CFO) program to help providers that are staying the course and are focused on growing their business. This new program will allow Providers to spread out their payments so that they are able to satisfy all of their obligations on a monthly basis. Drive will be offering many finance options like 7 months same as cash and 12 months with ZERO interest to qualified Providers as well as options that match up to reimbursement schedules for power mobility products.”
This is not to be viewed as an advertisement for Drive Medical. I want all readers, both dealers and vendors, to take notice. We can work the country out of the “recession” by teaming up the vendors, the providers and the customers into a huge block that has the ability to push the economy forward.