It’s hard to know when to stop doing business with a non-paying client and start enforcing your rights to payment. Failure to make the decision can put you out of business.
Smart credit policies protect you from doing business with those least likely to pay. And smart collection policy designs maximize recovery on receivables. But these policies are only effective if you use them. Continue reading “Fear of Enforcing Your Rights to Payment Can Put You Out of Business”
Include joint and several liability clauses in your contracts to maximize your ability to collect monies owed. So, stack the decks in your favor by going after the customer with deep pockets. Rather than chasing customers with little or no cash flow, or several customers, you will want to include a joint and several liability clause in your contract. By doing so you will strengthen your ability to pursue the customer with deeper pockets. And they would offer the greater capability to pay you monies owed.
What is joint and several liability?
Joint and several liability exists when two or more people or entities are liable with respect to the same liability.
Hence, you – the creditor – have the right to claim the execution of the obligation from any co-debtor. This relieves you from pursuing all the co-debtors. Among themselves, co-debtors are severally bound, held separately. Especially relevant is that under joint and several liability, you may pursue an obligation against any one party as if they were jointly liable. It then becomes the responsibility of the defendants to sort out their respective proportions of liability and payment. This means that if the claimant pursues one defendant and receives payment, it is the defendant’s responsibility to pursue the other debtors for a contribution to their share of the liability.
Joint and several liability allows you to purse one or more parties for the entire amount due you.
What are the benefits of including a joint and several liability clause in your contract?
There are several benefits that as a creditor you will enjoy when you include a joint and several liability clause in your contract. To name a few are: Continue reading “Joint and Several Liability Clauses Improve Debt Collection Outcomes”
Thinking about replacing your lawyer with someone else because you are unhappy with the results thus far on your NY debt collection case? Worried that replacing your current NY contingency fee debt collection lawyer with another will impact your bottom line? That any recovery on the claim would be further reduced because you will be required to pay fees to the outgoing NY contingency fee debt collection attorney as well as the incoming lawyer?
The Engagement was Clear NO COLLECTION, NO FEE
The terms were very clear when the NY contingency fee debt collection lawyer took on your claim. No recovery, collection of monies, no fee. The lawyer agreed. You both signed an engagement letter, a binding contract, that the claim was to be handled on a contingency fee arrangement.
For whatever reasons, you are unhappy with the current lawyer handling your debt collection claim. Perhaps the case has taken a lot longer than expected. The result is that as of now no monies have been collected. You are considering replacing your current NY debt collection contingency fee lawyer with another. Continue reading “Replacing a NY Debt Collection Lawyer – Contingency Fee Still Due?”
Companies and organizations are often challenged with what to do when clients don’t pay within terms. There are some accounts that routinely do not pay outstanding invoices within your terms. These are opportunities to improve your company’s cash flow. While you may have your payment terms established at Net 30, perhaps a discount offered to clients who make payments earlier, within 10 days, would encourage some customers to pay early. However, it seems that the majority of clients pay past the established Net 30 days.
There are changes that you can make that will help to improve receivables, improve cash flow and get your clients to pay within terms. Continue reading “What To Do When Your Clients Don’t Pay Within Terms”