What happens when a client wants to pay an outstanding balance from their future sales or services? Working with that customer had previously been profitable, but they’ve experienced cash flow issues. For those who wish to continue doing business with a customer who seems to be having difficulties, you need to know how to best position yourself to obtain payment on the aged balance as well as any future sales.
Is there an arrangement that will ensure repayment to you on an outstanding balance and provide future profit from the same customer?
Take for example a client of ours that is a chemical manufacturer. Their customer needs a resin to complete a product made especially for the automotive industry. Their customer has become a slow-paying customer and is way past the agreed-upon terms. They are, however, making weekly installment payments. Without the client’s product, the customer will not be able to fulfill future orders already secured by the automotive company. Having explained that to the resin manufacturer, with our assistance they arrived at the following arrangement: Continue reading “Should I Accept a Promise of Payment On an Outstanding Balance From Client’s Future Sales?”
How long will it take for you to collect my money?
My answer is: that I can tell you based upon statistics the percentage of cases that are paid in the demand, mediation, litigation, arbitration and judgment enforcement phases.
Your non-paying customers’ financial ability to pay, their inclination to pay, the documentation you have to evidence your transaction varies directly affects when we can collect your money. Every case is unique.
Continue reading “New York Debt Collection Lawyer: How Long Will It Take for You to Collect My Money?”
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”
You only have a year to do that. Since arbitration is an expedited process, you get a relatively short period to confirm the award in New York. Confirming the arbitration award has a 12-month statute of limitations. And the clock starts ticking the date of the arbitrator’s final determination, not the date of the arbitration award.
While confirming the award sounds simple and straightforward, there can be bumps in the road. Make certain not to drive into a pothole, causing damage beyond repair that prevents you from confirming your award on time. Continue reading “What’s The Time Limit To Convert An Arbitration Award To A Judgment In NY?”