LOST PROFIT

"If you sell 40 cars over a weekend at an average price of $25,000 apiece, you've got a million dollars in unpaid sheet metal rolling across the curb. A big dealership could do 100 cars on a busy weekend. Every day that goes by without turning those CITs into cash is lost profit, straight off the bottom line."

While banks, credit unions and the car manufacturers' financing arms generally pay off CITs quickly, some other lenders are not so forthcoming. Even with good lenders, a mistake in the paperwork can delay payment of a CIT.

"Sometimes your own people screw up the paperwork, missing a signature or something else the lender wants," the dealer says. "If the package is not complete, the lender's going to send it back. It is critically important that your finance department-and anyone involved in this part of the deal-is meticulous about sweating the small stuff. You as the owner have a responsibility to stay on top of them to make sure they do."

While the CIT issue might be unique to car dealerships, the focus on receivables is not. A 2005 Visa USA survey found that both small and large businesses share the same attitudes, opinions and concerns about cash management and cash flow. The issue they find most challenging is receiving and collecting payments, cited by 50% of respondents.