The Equipment Rental AR Playbook
Handle damage claims, cycle billing disputes, and seasonal collection patterns. Strategies for rental companies of all sizes.
Why equipment rental AR is unique
Equipment rental AR involves ongoing relationships, complex billing cycles, and disputes that require equipment knowledge—not just invoice chasing.
Damage Claim Disputes
Customer says the equipment was already damaged. You say it wasn't. Without good documentation and process, these disputes drag on forever.
Pre-rental inspection workflows with photo documentation and automated damage claim tracking
Cycle Billing Complexity
28-day cycles, monthly billing, weekly rentals—every customer has different terms. Collectors waste time just figuring out what's actually past due.
Billing-cycle-aware aging that shows true past-due status regardless of billing frequency
Equipment Still on Rent
Is the equipment actually returned? Collectors need to know before escalating—calling about a balance when equipment is still on rent damages relationships.
Real-time equipment status integration showing what's on rent vs. returned
Seasonal Cash Flow Swings
Revenue spikes in spring and summer, but cash collection lags. AR balloons during peak season when your team is already stretched.
Seasonal workflow adjustments and automated prioritization during high-volume periods
Multi-Location Customers
Same customer rents from five locations with five different billing relationships. Getting a consolidated view for collection is nearly impossible.
Customer-level AR consolidation across all locations with unified payment tracking
Equipment rental AR benchmarks
How does your AR performance compare?
Average DSO
Industry Typical
50-70 days
With Able Collect
35-50 days
Damage Claim Resolution
Industry Typical
30-60 days
With Able Collect
10-20 days
Touch Rate
Industry Typical
25-35%
With Able Collect
60-75%
Bad Debt Write-off
Industry Typical
1.5-3%
With Able Collect
0.5-1%
Best practices for equipment rental AR
Strategies from high-performing rental company collection teams.
Integrate Equipment Status into Collections
Your collectors need to know equipment status before making calls. Nothing damages relationships faster than demanding payment for equipment still on rent.
- Display on-rent vs. returned status directly in the collection queue
- Automatically deprioritize accounts with equipment currently on rent
- Alert collectors when returned equipment isn't reflected in invoicing
- Track off-rent dates to anticipate when final invoices will generate
Master Damage Claim Resolution
Damage disputes are inevitable. The key is having a consistent, documented process.
- Require pre-rental and return inspection documentation for all equipment
- Attach inspection photos and reports directly to the invoice/dispute
- Set SLAs for damage claim resolution—don't let them age
- Escalate unresolved damage claims to branch managers, not just AP
- Track damage claim win rates by branch and equipment type
Handle Billing Complexity Proactively
Don't make your collectors figure out billing cycles during collection calls.
- Configure aging to reflect actual billing cycles, not just invoice date
- Create customer-facing statements that clearly show billing periods
- Standardize billing terms for new customers when possible
- Train collectors on common billing questions and how to address them
Prepare for Seasonal Peaks
The time to prepare for peak season AR is before peak season starts.
- Tighten payment terms for new customers during peak season
- Pre-collect deposits from seasonal/occasional customers
- Increase collection intensity in early spring before the rush
- Consider temporary staff or overtime authorization for collection peaks
- Review credit limits for existing customers before peak season
Unify Multi-Location Customers
Large customers rent from multiple locations. Treat them as one relationship.
- Create consolidated customer views across all branches
- Assign major customers to dedicated collectors regardless of branch
- Coordinate collection efforts—don't have five collectors calling the same customer
- Use consolidated leverage: if they're past due at one location, it affects all locations
4 Proven AR Recovery Programs
Based on what works for rental companies like yours. Configure the triggers, thresholds, and escalation paths to match how your team operates.
Early Delinquency Outreach (30-60 Days)
The problem: Invoices drift to 90+ days simply because no one followed up early—especially during peak season.
The approach: Automatically identify at-risk invoices, generate professional outreach, track promises, escalate when needed.
Configure it: Set your balance thresholds, aging windows, and escalation timing.
High-Risk Recovery (90+ Days)
The problem: Large aged balances linger—often from customers who still have equipment on rent, complicating collection.
The approach: Surface high-risk accounts with equipment context, generate recovery strategies, coordinate with branch operations.
Configure it: Define your risk thresholds, equipment-on-rent handling rules, and escalation paths.
Damage Claim Fast-Track
The problem: Damage claim disputes sit unresolved for weeks. Cash stays stuck while someone digs for inspection photos.
The approach: Centralized damage claim queue, photo documentation workflows, automatic escalation to branch managers.
Configure it: Set resolution targets, documentation requirements, and escalation triggers.
Credit Risk Monitoring
The problem: By the time you see warning signs, you may have $200K of equipment on their site with $50K in aged AR.
The approach: Continuous monitoring of payment behavior and equipment exposure. Early warning alerts before problems escalate.
Configure it: Define your risk thresholds, equipment exposure limits, and alert recipients.
$1.1M-$1.8M
Combined annual improvement for mid-size equipment rental companies
*Based on outcomes from companies with $100-200M revenue and $12-18M in open AR. Impact scales with your AR volume—larger companies with more AR outstanding see proportionally larger results.
See Able Collect for equipment rental
We'll show you how Able Collect handles damage claims, billing cycles, and equipment status integration.