Once a collection agency get involved, nobody really wins either, but the agency will get paid no matter what the results are for either party, same as the lawyers.
That makes absolutely no sense at all; the collection agency only gets paid if they collect the dept, and then you both get paid.
The original topic was posted on 08-07-2006.
Then this on 03-07-2007
“I'm still waiting for the $1,000.00
Its been seven months, I don’t think they guy intends to pay anything it does not look like a “temporary cash flow problem”. I dunno maybe I am wrong here but a client that strings you along for 7 month on $1,000 invoice is not one you want anyway, and if a they are flaky enough that a collection agency might put them out of business, then you really don’t want to do any more work for them.
Just my very humble opinion but I have eaten enough small invoices (and big ones too) like this over the years and I have heard every good story you can imagine, and like someone said before, GCs go to school to learn how to stall you just past your lien rights and its down right underhanded.
Another point I would like to make is that filing a lien on a job does more to hurt a GC than any collection agency could ever hope to do. It can sour the relationship with the owner, stop the money flow, prevent them form acquiring more work, and even put a GC with cash flow problems right out of business. If you would not hesitate to file a lien notice, or even a lien, then why hesitate to turn it over for collection?
Sure lawyers, liens and collection agencies are all last resort options, but isn’t that what this topic is about?
Not trying to be adversarial, I just have a lot of energy on this topic. Just recently I got burned for 30K by a contractor out of NJ, it was on a public project and local laws and lean options would not work for me, so after 6 months of trying to get my money I finally turned it over for collection, and got paid in 9 days.
It turns out the owner of the company did not know, that I had not been paid and the guy I was dealing with was not paying lots of people for what ever reason. All it took was one collection call to the owners cell phone while he was playing golf and my check was on its way. With my resources I never would have been able to research this company, find the owners cell phone and call him, but for 20% I got it done.
Just something to think about, and yes you are correct these options are a last resorts and will guarantee that you never work for that GC again.
[This message has been edited by ITO (edited 03-08-2007).]
