A Fool Proof Way To Clean Up Your A/R
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Construction Credit Knowledge
PAY WHEN PAIDPAY IF PAID
JOINT CHECK AGREEMENTSBANKRUPTCIES
DELAY DISPUTES & DAMAGESWORKMANSHIP DISPUTES
CHANGE ORDERSSCOPE OF WORK ISSUES
CODE INSPECTION VIOLATIONSPREVAILING WAGES
PAY WHEN PAIDPAY IF PAID
JOINT CHECK AGREEMENTSBANKRUPTCIES
DELAY DISPUTES & DAMAGESWORKMANSHIP DISPUTES
CHANGE ORDERSSCOPE OF WORK ISSUES
CODE INSPECTION VIOLATIONSPREVAILING WAGES
There are a lot of reasons why
getting paid is tough in your industry
Every time you can’t collect a $100,000 Debt
The company needs a lot of money to break even:
10% NET: $1m5% NET: $5m1% NET: $10m
Time Flies
10DAYS
Time Flies
30DAYS
Time Flies
60DAYS
Time Flies
90+DAYS
Your A/R Report Gets Really Long.CONSEQUENCE
You can’t call everyone.CONSEQUENCE
Debts Slip Away.CONSEQUENCE
WHATCan YouDO?
You Need A Payment Funnel
Payment Funnel
Protect Mechanics Lien & Bond Claim RightsOn All Projects At The Start
Payment Funnel
Smart CompaniesAlways SendPreliminary NoticesBecause they prioritize your invoices above others.
Payment Funnel
Protect Mechanics Lien & Bond Claim RightsOn All Projects At The Start
GCs and Owners Track Who Does And Does Not Send Notices
Payment Funnel
30 Days OverdueSend Notice of Intent
Protect Mechanics Lien & Bond Claim RightsOn All Projects At The Start
Payment Funnel
What If...50% Of Your Trouble AccountsWOULD PAY YOU
Within just 20 Daysof sending 1 little documentThat was really, really inexpensive
Payment Funnel
30 Days OverdueSend Notice of Intent
Protect Mechanics Lien & Bond Claim RightsOn All Projects At The Start
The Notice Of Intent To Lien
http://zlien.us/incredit
Payment Funnel
30 Days OverdueSend Notice of Intent
75 Days OverdueFile Mechanics Lien
Protect Mechanics Lien & Bond Claim RightsOn All Projects At The Start
Why Mechanics Liens Rule
View This Other Presentation To Learn Why Mechanics Liens Work To Get You Paid
Or Articles Here:Why Lien
Construction Lawyers Agree:
“A personal guarantee or joint check agreement is nice to have, but not a substitute for a lien or bond claim.”
Joe Virene, Esq.Texas Subcontractor & Supplier Legal Guide
Construction Lawyers Agree:
“An Unpaid Contractor’s Best Friend”
David T. Arena, Esq.Illinois Mechanics Liens: Di Monte & Lizak LLC
Construction Lawyers Agree:
“An essential collection tool for contractors and material providers in construction projects.”
Paul C. Bauducco, Esq.Smart Tools of the Construction Industry
Payment Funnel
30 Days OverdueSend Notice of Intent
75 Days OverdueFile Mechanics Lien
File Foreclosure LawsuitBefore State Deadline
Protect Mechanics Lien & Bond Claim RightsOn All Projects At The Start
Payment Funnel
30 Days OverdueSend Notice of Intent
75 Days OverdueFile Mechanics Lien
File Foreclosure LawsuitBefore State Deadline
Protect Mechanics Lien & Bond Claim RightsOn All Projects At The Start
NOT LIKELY!
Payment Funnel
5% Or Less Of Projects Need
2.5% of ProjectsOr Less Need
< 1% of ProjectsOr Less Need
100% Of Projects Need
Payment Funnel
50 Accounts
25 Accounts
9 Or Fewer Accounts
1000 Accounts
1 Account = $10,000
$10,000,000 Of Accounts90k Uncollected (in Litigation)
= 0.9% Uncollected Percentage
Payment Funnel
50 Accounts
25 Accounts
9 Or Fewer Accounts
1000 Accounts
1 Account = $10,000
$10,000,000 Of Accounts90k Uncollected (in Litigation)
= 0.9% Uncollected Percentage
And Even That May Be Collected Through Litigation
Payment FunnelClient Example
Payment FunnelClient Example
Bad Debt Write Offs:
2010:
2011:
2012:
.035%
.067%.012%
Payment FunnelClient Example
Bad Debt Write Offs:
2010:
2011:
2012:
.035%
.067%.012%
“We have a lot more options now if we want to work with
someone who has risky credit or can’t pay our
deposit upfront.”
Export Your Aged Receivableswith Project Information
Send to zlien for importing
We Calculate Which AccountsStill Have Lien Rights
Create Actionable DeadlinesKnow which accounts are eligible for liens
Create Actionable DeadlinesKnow which accounts are eligible for liens
Send Notices of Intent &Get Paid On Half
File A Lien On The Remainder And Get Paid on
> 65% Of Those
Continue Protecting Your Lien Rights To Improve DSOs
Create Actionable DeadlinesKnow which accounts are eligible for liens
Send Notices of Intent &Get Paid On Half
File A Lien On The Remainder And Get Paid on
> 65% Of Those
Continue Protecting Your Lien Rights To Improve DSOs
Create Actionable DeadlinesKnow which accounts are eligible for liens
Send Notices of Intent &Get Paid On Half
File A Lien On The Remainder And Get Paid on
> 65% Of Those
Continue Protecting Your Lien Rights To Improve DSOs
RESULT: Lower DSOs, Less Bad Debt
http://zlien.us/bulkliens
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Questions?
