CAN LIEN LAWS PROTECT YOUR CUSTOMER RELATIONSHIPS
The short answer is YES!! However, filing a mechanic’s lien is a serious step in business.
When you’re chasing money that’s owed to you it’s important to remember that filing a lien against real property can have negative effects on your relationship with your customer.
Manifesting Bad Blood
It's not uncommon for a property or project owner to become intimidated once receiving a preliminary notice, and it's not unheard of for negative feelings to develop because of a recorded mechanic’s lien. There have been cases where relationships between a contractor and a client have been ruined due to the recording of a mechanic's lien.
That is why it’s important to maintain a strong line of communication with all parties involved and throughout a construction project.
A mechanic’s lien should be considered your last course of action short of an actual foreclosure of the lien.
However, it’s possible to avoid these nasty situations by using the most professional course of action when you’re owed money. Use the following tips to give yourself the best shot at salvaging a relationship with a customer that’s had financial issues.
Building a strong relationship with all your customers also means being direct about your collection/credit policies. It should be clear that you utilize your state’s Lien Law requirements governed by states statutes to protect your interest as well as what services you’re willing to extend credit for.
When a client owes you money, it’s important not to let personal feelings get in the way of being professional. Business is business, and everyone wants to receive compensation for services rendered. Don’t allow a customer you to make you feel bad about taking measures to get what’s rightfully yours.
The bottom line is this – if the customer is professional from the start and takes responsibility for their financial obligations, you will never be forced to file a mechanics lien.
The experienced staff at Nationwide Notice, Inc. will assist you in submitting and tracking the correct legal documents required by your state to protect your lien rights which is a valuable tool that aids with your receivables.
Nationwide Notice, Inc. can partner with construction companies of all sizes, strive to work with your contractors and sub-contractors by using existing lien laws as leverage to ensure payment, as well as secure their lien rights to get the money they deserve.
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