Tag: Credit Policy

  • Quick Tips to Manage Financial Risk and Get Paid in Construction

    Quick Tips to Manage Financial Risk and Get Paid in Construction

    The ability to secure payment for labor and/or materials furnished to improve property is built directly into the laws of every single state in the country – all 50 of ’em, and all of the U.S. Territories too! These laws are incredibly powerful tools, however, you just need to meet the statutory requirements in order…

  • How to Reduce DSO of Construction Invoices

    Credit teams in the construction industry constantly battle late payments. In particular, subcontractors and suppliers performing labor or supplying materials to help permanently improve a property are farther removed from the money behind the project, and, therefore, must often deal with dreaded DSO (Days Sales Outstanding). Read on to find out some of the best…

  • 6 Metrics to Track Your Mechanics Lien Policy

    If you aren’t keeping track of metrics, then it’s impossible to know if you’re improving. Far too often, credit departments send notices and file liens without structure around measuring whether or not the notices are working. Think, for example, about a company that spends $3,000 per month on protecting lien rights (that’s a $36,000 annual…

  • 10 Things to Consider When Writing A Credit Policy

    Credit policies are critical documents for nearly every organization, but especially for those B2B businesses who manage trade credit. Nearly every construction industry business is in this position, as construction materials, labor, and services are typically furnished and then billed, leaving these companies with cash and credit management challenges. Further Reading: [zlien id=”33972″] The idea…

  • Lien Policy: Best Practices and Overview

    Lien Strategy Before getting into the ins and outs of lien strategy, it’s important to note that filing a lien is only one step in the process of lien rights management, and lien rights management is just one aspect of credit management and receivables policy for construction companies. The zlien methodology: Protect, Monitor, Warn, Secure,…