Historically, companies in the construction industry have been either reluctant or unable to fully utilize the security granted to them by statute. The complexity of the rules and requirements associated with remaining in a secured position made it difficult,…Read More
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With the high failure rates in the construction industry, many companies have a nagging worry about a customer filing for bankruptcy with invoices still unpaid. It’s unfortunate, but this worry is not unfounded, and the dread of receiving a bankruptcy…Read More
Participants in the construction industry are in an enviable position in that the ability to secure every extension of labor and/or materials on credit is built directly into the law, as long as certain procedural steps are taken. Despite this,…Read More
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
Every factor to be considered prior to an extension of credit is in some way related to risk assessment. Or, to put it another way, before extending credit you should determine how likely or unlikely it is that you think you are going to be paid. When…Read More
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…Read More
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…Read More
I find myself writing about policy a lot on Construction Finance Journal. 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…Read More
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…Read More
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…Read More