Unfortunately, the failure rate of construction industry participants is high. This means that the bankruptcy or pending bankruptcy of a contractor is more common than many people may think, and definitely not an unheard-of reason for payment problems….Read More
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First, I’ll just get it out of the way and let you know I’m not talking about getting bailed out by the government. Although, becoming “too big to fail” is a good place to be.
So, what is the mechanism by…Read More
While it’s sometimes overlooked, or just ignored, a specific litigation policy is an important piece of a complete and thorough credit policy. Coupled with a good collection policy, and a thorough lien policy, a specifically followed litigation…Read More
The Payment Funnel is an important, and useful, concept that can reinvent your receivables and lead to less bad debt and fewer write-offs. But, before the specifics of the Payment Funnel concept are discussed, a little bit of background on the…Read More
At the start of a new year, many companies in the construction industry have made resolutions to increase profits and/or decrease bad debt. This seems like an obvious goal, but year after year after year…Read More
As the end of the year rapidly approaches, it’s time for companies to take stock of their receivables, reevaluate (or create) their credit policy, analyze their average DSO, grade their collection efforts, and vow to get paid more often…Read More
Notice Policy — Is It Worth It?
It’s no secret that compliance with notice requirements, especially when projects are located throughout many different states, is a difficult, time-consuming, and frustrating task. With deadlines changing state-by-state, project-by-project, and role-by-role, it can be nearly…Read More
In the construction industry, personal guarantees are popular, and can provide an additional option for recovering money due. Generally, a personal guarantee is most likely to be utilized as payment protection when dealing with a new, or small, business, and when…Read More
Rohit Arora, CEO of Biz2Credit, published a great article last week on Fox Business’ Small Business Center: 5 Tips for Handling Cash Flow Peaks and Valleys (as seen in HVACR Business Magazine eNewsletter). Every business – from mom and pops to…Read More
Getting paid in the construction industry can be an art because there are so many obstacles: pay when paid provisions, bankruptcy, joint check agreements, workmanship disputes, change orders, scope of…Read More