Credit Q&A

The mechanics lien process and all its related glory is by far the number one topic I get asked most about, and it's the most misunderstood and under-utilized tools in the credit and sales tool kit.

Lack of cashflow is one of the top three reasons businesses fail, along with poor management and partnerships. I would add “making someone else’s problems your problems” to that list.

Take the COVID-19 crisis as a serious wakeup call and revamp, improve, streamline, and update your credit and collections processes.

A virtual filing cabinet is easy to set up. Select a place where it will “live” at your company, such as your shared drive, then password protect it.

If we have credit insurance on the accounts receivable is there any reason the company would still need me?

Dear Thea, We are considering an announcement to our customers that credit card payments will be exempt from their discount.

Dear Thea, We have never allowed customers to take their discount on sales tax or delivery charges. We don’t allow the discount on sales tax due to the fact that we have to remit the full amount to the state, not the discounted amount.

How often should we be getting updated credit applications signed by our customers? Is there a period of inactivity on the account that should be a factor to consider if we ask the customer to sign the forms again?

Dear Thea, If I hear the phrase “He has been a great customer with us forever. He always pays, he just runs slow,” I will scream!

My question is about retention. If prompt payment has happened throughout a project, would it be necessary to file a lien or bond claim for the retention balance?