Commercial Debt Collection Tips To Find Fast Resolution
Review your credit application. Extending credit to customers can be very risky; however, a comprehensive credit application containing security language can mitigate that risk and allow you to file a UCC-1 to further secure your receivables.
Educate your credit & sales teams throughout the year by contacting us to become part of our ongoing educational programs.
Secure your receivables (inventory, accounts, fixed assets, and other collateral) by implementing a UCC Filling Program. A properly perfected UCC filing sets a priority payment in the event of debtor bankruptcy, allowing you to potentially recover hundreds of thousands of dollars.
Obtain copies of payments bonds & review surety stability, if a project is bonded, a copy of the payment bond will confirm both the oblige (project owner) and the principal (prime contractor). Knowing who the contractual chain is critical. The recommended best practice is to obtain a copy of the payment bond when contracting for a project. Getting a copy of the bond up front is crucial and very important; there are no problems on the project, everyone is happy and requesting a copy of the payment bond will be viewed as a normal course of business.
Lien Waivers: fully understand the benefits of lien waivers as well as the various types of lien waivers. The primary types of lien waivers are Final Conditional, Final Unconditional, Partial Conditional and Partial Unconditional.
Utilize the Preliminary Notice. The preliminary notice is the most common and most effective step in the process for securing rights to money owed for materials or services provided. Did you know that 98% of preliminary notices prepared, as part of a complete process, generate payment without going to suit?
Take the opportunity and file a UCC on your Promissory Notes. A Promissory Note is a signed document containing an unconditional promise to pay specified funds to another party by a specified date.
Information is critical when securing your lien & claim rights. Be sure to take advantage of Job Information Sheets at the start of each project. It is a simple form, listing all the project information including the names and address of the project, the owner, the prime contractors, the subcontractor, also including information regarding payment bonds, lenders, etc.
Optimize the right time to place your customers that are not paying with Construction Credit & Finance Group. By allowing us to design and customize a proactive solution for you that will minimize your risk, reduce your DSO & IMPROVE your cash flow you can rest assure that your customers will be treated with respect from day one.
Not allowing your customer to take advantage of your credit terms and allowing a company like CCFG to bring them to the table to resolve the matter is the quickest way to get the money your owed. Allow us to be your partner in securing your assets and streamlining a process that is designed for your company’s needs, now ours. We are the industry leader throughout when it comes to commercial construction collections, mechanic’s liens/bond claims and UCC filings.
Disclaimer … (Contact your attorney for legal advice regarding the information shared in this blog as we are not attorney’s or providing legal advice.)