What should I ask about a trailer repair shop’s parts runner and supplier credit?

A trailer shop lives on getting a part today so a rig leaves tomorrow. Ask how that happens. Is there a dedicated parts runner, an employee who also turns wrenches, or a supplier who delivers? Find out the cost of that service, whether it is a wage, a vehicle expense or a delivery fee, and whether the person doing it plans to stay.

Then turn to supplier credit. Ask for a list of every supplier account, the credit limit and the usual payment timing. See whether limits were secured by a personal guarantee from the seller. If so, you will probably be asked to replace it, and a supplier may reduce limits at first. A line of credit or working capital loan can bridge that gap, so ask your lender about it early.

Finally, check the aged payables. A shop that is stretching suppliers to fund itself looks healthier on paper than it is. Compare balances to the past year’s purchases and ask the seller to explain any supplier on hold or any dispute. Ask also whether any supplier gives the shop special pricing tied to volume, and whether that pricing survives a change of ownership.

Key takeaways

• Ask whether supplier accounts and limits belong to the shop or to the seller personally.
• Request supplier statements and look for overdue balances or accounts on hold.
• Line up your own credit before closing in case suppliers reset terms.