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The Indispensable Guide to Mechanics Liens In Bankruptcy

It is an unfortunate reality that bankruptcy plays a disproportionately large role in the construction industry when compared to other large industries in the United States. It’s not uncommon for bankruptcy, or even a potential bankruptcy, to significantly impact multiple parties on a construction project. Any company that extends labor and/or materials to a financially […]

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Credit Management: Why Aren’t More Accounts Receivable Secured?

A while ago, I posed a question over at the Construction Credit Professionals Linked in group: “Why Doesn’t Everybody Secure the Debts Owed to Them?” With the variety of ways to secure outstanding debt, and new technology making it easier for any type of business to gain that security, it seems to me that the […]

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Collections Policy: How Other Security Can Help Collections Policy

  I find myself writing about policy a lot on Lien Blog. Today’s discussion is about collections policy. Collections policy is the last moving part when it comes to credit policy. Overview of Collections Policy If all goes as planned then there will never be a need to implement a collections policy because your company […]

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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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Security Interests: A Brief Overview

It’s no secret that a secured creditor is in a much better position to be paid than a general unsecured creditor. This blog has routinely pointed out that for folks in the construction industry, the ability to secure the debt owed is automatic and built into the law – provided that the various formal requirements […]

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Credit Management: Secured Debt – What Is It, and How Can It Help A Credit Policy?

Extending labor and/or materials on credit opens up the possibility of your business being burdened with bad debt. Since the actual cost of bad debt is many times greater than the amount of the bad debt itself, it clearly makes good business sense to insulate your business’s exposure to this type of situation. While, practically, […]

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How Does Security Relate to a Credit Policy?

A few recent posts have briefly outlined the importance and basic content of a sound credit policy. Many of the posts have noted that, for parties in the construction industry, having a lien/bond claim policy can be a vital part of their credit policy. The mechanic’s lien (if the minutiae of the lien law is […]

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What Is A Lien?

Lien. The word gets thrown around like a hot potato on a construction project. Here on this blog, I use the word constantly, and advocate that credit managers “file a lien” to protect a company’s rights to payment. But what exactly is it? How does it work?  What does it do and not do?  This […]

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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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Oregon Appeals Court Creates Bright Line Rule: No Mechanics Lien Rights If Debt Already Secured

A long, long time ago – in 1876 – the Oregon Supreme Court was faced with a situation where a contractor filed both a construction lien and a mortgage against a single property securing a single debt.  This month they released another opinion confirming that decision and expanding its scope. 1876 Oregon Construction Lien Invalidated […]

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How To Secure Your Risk When Shipping Materials On Credit

Zlien is an Associate Member of the Construction Financial Management Association (CFMA), and a controller for a material supply company recently posed a question to that organization’s LinkedIn Group, inquiring about how others in the group mitigate their risk when supplying materials on credit. There were 4 or 5 responses to the question, and these […]

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