Liens Are Just One Way To Collect Debt – Other Best Collection Practices

I love a great article about collection practices. Not only is a topic I've written about in the past (see posts from the Construction Lien Blog here, and from the this blog here), but it's one of the more important topics for those in the construction industry. Consider a "bad debt calculator." I love these types of calculators, because it puts the tragedy of bad debt in your face. Take a modest amount of bad debt ($25,000), and a candid profit margin (5%), and you'll see that it takes $500,000 of revenue to recover the lost income. Amazing. Last week, Melissa Brumback's Construction Law in North Carolina blog posted a blog post with "8 Best Collection Practices." The article does a great job of hitting on the things you can do to minimize your bad debt - and things, that we've even said over and over: Be careful when extending credit, have a written contract, and don't let too much time pass before implementing your collection procedures. These, of course, are just a few tips. The post does a great job of enumerating each tip and discussing their importance, so there is not need for me to regurgitate it here...just take a look at Melissa's post for more.
Scott Wolfe
About the Author: Scott Wolfe
Scott Wolfe, Jr. obtained his J.D. degree from Loyola University of New Orleans, and his B.A. from Southern Methodist University in Dallas, TX. In 2006, 2007, 2008 and 2009, Scott was recognized as a Leader in Law by CityBusiness Magazine. The son and grandson of general contractors, Scott is a construction litigator in the Pacific Northwest, and the founding member of the bi-coastal law firm, Wolfe Law Group. Scott is also the founder and CEO of Express Lien, Inc., a legal document preparation service for contractors. In 2008, City Business Magazine recognized Scott as one of its Innovators of the Year for the Express Lien concept. As an entrepreneur himself, Scott has a strong background in business and commercial transactions and laws. He focuses his practice on the legal issues facing the construction industry, and has represented clients in multi-million dollar construction disputes in litigation and alternative dispute resolution proceedings. Scott is a LEED AP.

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