Getting Paid: Managing Your Account Receivables Part 2

Our Miami contractor attorneys know that the construction industry has significant credit challenges. There is a constant need to balance the reduction of financial risk while increasing revenue. Although it can be challenging, the following tips will help you to manage your account receivable well. This article wraps up our two-part series, refer back to part one to learn more.

Limit the Credit You Give

Create both a credit and lien policy. You may want to be generous with your clients, but you must use wisdom. With a policy in place, you will establish who qualifies for credit and when to extend credit. You will also know when lien rights will be preserved and enforced. Not only should you know your own financial limits, but you should understand the level of risk you’d be exposing yourself to based on the client you’re dealing with. Some clients you may be able to extend more credit to while others you’d have to establish stricter limits.

Stay in Contact With Clients

You completed your latest project on time, sent an invoice to your client, and are awaiting payment. However, the client is dragging their feet. Be proactive and contact the client on a regular basis with tactful, but firm payment reminders. The more you persistent you are, the more likely they’ll go ahead and pay up.

Negotiate With Key People

If the payments owed to you are delinquent, never waste time talking to the wrong people. Seek out the one that has the authority to make decisions and cut checks. If your client refuses to pay you, you have recourse such as filing a lien against the property.

If you would like to speak with a Miami contractor attorney, please contact us at 954.210.8735, or submit our contact request form.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.