We have a dealer that want his customer to wire His contract amount to us we are to take our amount out of the wire then reimburse our customer with the overages. I am assuming that I treat this like a joint check agreement. But since this is new to me thought I would run the question to the community. Your thoughts
CMA Community
Sponsored by Credit Management Association
-
Posted 2 years ago #
-
Shouldn't be a problem to do, but I would strongly suggest getting an agreement in writing from both the dealer and your customer, and that upon receipt of your wire you contact the customer and the dealer with the amount received and the amount you will be paying your customer. You should also ask how long it will take the wire to fully clear, so that when you pay out you don't suddenly have a wire reversed.
Posted 2 years ago # -
I the agreement should i set it up as a Joint check agreement stating that the fund will be transferred to us and then we will disperse the funds to our dealer after the wire has cleared? The reason I have this question is it is a High Dollar amount for the material so i am assuming that the contract amount is substantial. Our Dealer wants us to receive the complete amount and then send him the overages. In our Group Meeting today they made the statement that in essence he our dealer would be considered as an employee.
Posted 2 years ago # -
In my opinion, I think you are pretty safe with wire transfers, but I agree that there is a risk IF a wire transfer payment can be reversed. I am betting they cannot be reversed easily, but I would not be sending the dealer their "profit" on the sale until I knew for certain that there was no risk to my company in doing so.
Best regards
Michael Dennis
Posted 2 years ago #
Reply
You must log in to post.
Copyright 2011 - Credit Management Association