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How to Reduce DSO of Construction Invoices

Credit Management

Credit teams in the construction industry constantly battle late payments. In particular, subcontractors and suppliers performing labor or supplying materials to help permanently improve a property are farther removed from the money behind the project, and, therefore, must often deal with dreaded DSO (Days Sales Outstanding). Read on to find out some of the best ways […]

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How to Choose a Construction Notice Software

How to Choose a Construction Notice Software

Choosing the right construction notice software can transform a construction firm’s credit policy and DSO. Since preliminary notices are required by most states in order to secure lien rights, sending notice is a key element of extending credit, securing payment, and taking on new business for construction companies across the US. Implementing a notice management software […]

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6 Metrics to Track Your Mechanics Lien Policy

6 metrics to track your lien policy.001

If you aren’t keeping track of metrics, then it’s impossible to know if you’re improving. Far too often, credit departments send notices and file liens without structure around measuring whether or not the notices are working. Think, for example, about a company that spends $3,000 per month on protecting lien rights (that’s a $36,000 annual […]

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10 Things to Consider When Writing A Credit Policy

Credit Policy Information and Tips

Credit policies are critical documents for nearly every organization, but especially for those B2B businesses who manage trade credit. Nearly every construction industry business is in this position, as construction materials, labor, and services are typically furnished and then billed, leaving these companies with cash and credit management challenges. The idea of a credit policy […]

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Lien Policy: Best Practices and Overview

Lien Strategy Before getting into the ins and outs of Lien Policy, and lien strategy, it’s important to note that filing a lien is only one step in the larger scheme of lien strategy as it relates to credit management and receivables policy. In fact, if the rest of a companies credit policy is working, most […]

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Credit: Important Parts Of A Credit Policy

Credit

Here at zlien , we help organizations in the construction industry manage credit that has been extended on projects. We help by encouraging the preservation of rights on real property, primarily by the filing of a mechanics lien. A good credit policy encompasses so much more than just filing notices and liens. Many companies avoid the implementation […]

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Credit Management: How Zlien Fits Into Your Company Credit Policy

ncs-credit-zlien-comparison

Before zlien the construction industry was divided into two camps, 1) those who paid lots of legal bills to keep debt secured and accounts receivables low and 2) those who ventured to take on this arduous task alone. When you look at the bottom line for a construction industry company in either camp, it’s almost […]

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Security Agreements: How to Draft One That Works

We’ve recently posted a few articles about security interests, and how they can be used work to mitigate or eliminate a business’s credit risk. I posted a brief general overview of security interests last week, and Seth followed up with a post describing UCC liens and how they create security interests for parties in circumstances […]

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What Is a Credit Policy – And How Do I Make a Good One?

Credit Policy Information and Tips

The credit policy is a critical document for any business, but especially one in the credit-heavy construction industry. Your company should clearly lay out its philosophy on extending terms to customers and collecting on overdue accounts. If there’s no plan, there’s no hope for survival. This article is part of our educational course about credit management in the construction […]

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Credit Management: Accounts Receivable Management for Construction Industry Controllers

The accounts receivable management industry is finally getting a little love from technology. If you want proof, check out the great things being done by folks like Cortera, Receivables Exchange, and  FundingGates. Standard operating procedures for businesses in managing credit and accounts receivables are applicable to those in the construction and building material supply industries. However, […]

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