What Can Material Suppliers Do When A Customer Doesn't Pay On Time?

Jan. 14, 2013 - PRLog -- Zlien has published a White Paper to help material suppliers answer the question of "What To Do When A Customer Doesn't Pay On Time?" The White Paper proposes a solution that uses new technology to automate the lien and bond claim process, turning the industry's credit problems completely upside down.

The building materials supply industry faces serious credit challenges. Its margins are tiny, its customers fail more often than any other business type, its debt ratios are astronomical and nearly all of its revenue hinges on good credit decisions.

"Traditionally, the tools available to credit managers and controllers simply mitigated the credit risk," says Scott Wolfe, author of the white paper and a licensed construction attorney in six states with experience in credit management. "Better credit applications, joint check agreements, personal guarantees and credit monitoring are all great tools, but they require time and money commitments and they don't solve the non-payment problem that will inevitably arise."

The White Paper goes beyond credit risk control and inquires into whether new technologies allow the building material supply industry to actually solve the credit challenge.

"Mechanics lien and bond claim laws are there to completely solve the industry's credit exposure," says Wolfe, "and they have been there for 200 years."

So why does the problem persist?  California construction attorney, Seth Smiley, weights in on this question: "Sure mechanics lien and bond claim laws have been available for years, but they have traditionally been of no practical use because of their complexity."

Zlien's White Paper suggests that new technologies are available to automate lien and bond claim compliance nationwide.

"What if your building material supply company could accept riskier clients while decreasing your DSO, increasing your cash and working capital and widening your overall net profit margin," asks Wolfe.  "It's a no-brainer."

What to do if your customer doesn't pay on time?  Preserve and perfect your lien rights and turn that customer's account into a secured debt.   That's the story of the new White Paper from Zlien.  You can download it at:
http://www.zlien.com/blog/wp-content/uploads/Liens-When-C...

About Zlien™
Zlien is the nation’s largest and fastest-growing mechanics lien and preliminary notice service. Zlien has helped thousands of contractors and suppliers protect their lien rights on construction projects across the country, and get paid on difficult accounts. Zlien is an authorized submitter for E-Recording in over 800 counties throughout the US. Zlien is focused on building the construction industry’s easiest-to-use, automatic and most comprehensive service to manage mechanics lien compliance.  More information about Zlien may be found at http://www.zlien.com