Payment plans may feel compassionate, but they often worsen delinquency and harm cash flow. Allowing partial payments encourages customers to fall further behind.
From an asset perspective, payment plans disrupt predictable income and complicate collections. They also delay returning units to rentable inventory.
Clear policies that require payment or auction protect both revenue and asset value. Consistency is critical.
Strong collection policies ultimately serve customers better by setting clear expectations and preventing prolonged financial strain.
