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You are in the construction industry and you're waiting on payment. It's a familiar scenario that can happen for a variety of reasons...but what do you do? What is the best way to collect? This presentation examines the tools available to you to collect on an unpaid account, including personal guarantees, joint check agreements, credit agreement provisions, mechanics liens and more. But the real value of this presentation is that it identifies which remedy is the best of all, and why it's the most likely to get you paid fast.
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The Best & The Rest:What’s Available To Get You Paid
Problem: You’re Unpaid
Solution: Too Many. Which Will Work?
Problem: You’re Unpaid
Solution: Too Many. Which Will Work?
This presentation answers this important question
The Construction Industry Has Unique Credit & Collection Challenges
Some Remedies Just Stand Out As The Best Available
But Every Remedy Has Warts
Alternative 1: Personal Guaranty
The Warts:
The Good: Personal Liability Prioritizes Your Debt Among Others
Only as good as the individual signing it, and contract language can be tricky.
Alternative 2: Joint Checks
The Warts:
The Good: Staple of industry. Enables you to collect from other parties.
Joint check agreements vary from form to form, and courts interpret differently. You never know what you’re going to get.
Alternative 3: Notice of Intent to Lien
The Warts:
The Good: Highly effective, even when you don’t have lien rights.
If you don’t get paid, you just made an empty threat. This sets bad precedent.
Alternative 4: Good Contracts
The Warts:
The Good: If your agreement includes the right legal terms, you’ll have lots of leverage.
It doesn’t guarantee payment, and must be done before you have a payment problem.
Alternative 5: Followup
The Warts:
The Good: Following up on unpaid accounts is very effective to get them paid.
Sometimes, a non-pay situation will escalate too far to be solved by followup or similar management tools.
But The Mechanics Lien Is The Best Remedy Available To Contractors And Suppliers.
Construction Lawyers Agree:
“A personal guarantee or joint check agreement is nice to have, but not a substitute for a lien or bond claim.”
Joe Virene, Esq.Texas Subcontractor & Supplier Legal Guide
Construction Lawyers Agree:
“An Unpaid Contractor’s Best Friend”
David T. Arena, Esq.Illinois Mechanics Liens: Di Monte & Lizak LLC
Construction Lawyers Agree:
“An essential collection tool for contractors and material providers in construction projects.”
Paul C. Bauducco, Esq.Smart Tools of the Construction Industry
Why Mechanics Liens Rule
View This Other Presentation To Learn Why Mechanics Liens Work To Get You Paid
Or Articles Here:Why Lien
• 2 Emails Per Week For 6 Weeks
• Credit & Collection Policy Tips
• How Successful Credit Professionals Increase Revenue And Decrease Risk Free!
http://zlien.us/6week-creditpro
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