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Personal Guarantees In The Construction Industry

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 dealing with relatively limited credit amounts. This is because a personal guarantee is just […]

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Mechanics Liens: Are Your Lien Rights The Best It Gets When Time To Collect A Debt?

You are a subcontractor or supplier and you have an unpaid account on your hands. This can happen for a variety of reasons. Maybe your customer filed bankruptcy, is being stretched because of a pay when paid clause, or maybe they are involved in a construction dispute. Notwithstanding the circumstances the fact remains that your […]

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Credit Management: Credit Department v Sales Departments – How Everyone Can Get Along

Running a successful business can be full of complications, but your company’s bottom line really boils down to doing two things well: (1) Acquiring clients; and (2) Getting paid for what you do. It’s that simple. Or is it? This article examines the balancing act required for companies to perform both of these tasks well, […]

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No-Lien Clauses and Personal Liability in Indiana

A recent case out of Indiana, Feitler v. Springfield Enterprises, addressed two interesting issues: whether “no-lien clauses” in construction contracts are valid and whether parties who are prevented from filing mechanics liens due to no lien clauses can still recover under Indiana’s personal liability statute. What is a No-Lien Clause? As we’ve discussed in the past, only a minority of states […]

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Researching Preliminary Notice Data Is Important

Creating a Concrete Credit Application

There’s no doubt about it: as Zlien’s very own Nate Budde says, the credit application is a crucial part of the credit policy. Having a formal, written credit policy is the ONLY way to run a trade credit operation and the credit application is what puts it into action. Yes, you can easily Google examples […]

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Credit Management: Three Traits Of A Great Credit Manager

In the past, as a construction attorney and now as the CEO of Zlien, I’ve consulted with thousands of companies about the thing they care about most: getting paid.  This means working with credit managers, CFOs and controllers to prepare and implement credit policies and procedures. In this capacity, I’ve learned a lot about what […]

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Creative Options To Secure A Party’s Promise To Pay

Promises PromisesFielding excuses for non-payment and promises of future payment is a fact of life in the construction and building supply industry. We’ve published two helpful articles about this here on the Lien Blog:  (1) Dealing With Excuses When Trying To Collect Your Construction Debt; and (2) Promises To Pay Mean Squat To Your Mechanics […]

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Mechanics Lien Rights Are Better Than A Personal Guaranty

Since mechanics lien laws and credit policies go hand-in-hand, we’ve had the opportunity in the past to write about different credit protection mechanisms like joint check agreements, credit insurance and personal guarantees. Which remedy is the best?  Of course, each situation is different and calls for different credit protections, but we are obviously fans of […]

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High Debt Ratios In Building Supply Industry Means High Risk – Can You Control The Risk?

Anyone in the building materials and supply industry knows that managing credit and debt is one of the company’s primary challenges.  This is no industry secret, either. An enourmous amoutn of materials are furnished to projects and contractors on credit, and as a result, the industry has one of the highest debt ratios (behind only […]

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The 1 Thing Great Credit Managers Know That Keeps Their Companies In The Black

Earlier this week a LinkedIn question inspired me to write a post about personal guarantees, and whether a personal guarantee was enough to protect a company’s credit risk.  It’s not the first time I talked about personal guarantees, nor is it the first time I talked about protections available to companies that is not a […]

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