If you run a medium to large-sized business, you know that outstanding debt can create a ripple effect that may impact your bottom line and company success.
While any industry can encounter collection challenges, some face particularly tough hurdles in this area due to unique operational and contractual complexities. Here is some clarity on three such fields that are abundant in Florida.
Construction and contracting
These industries often struggle with unpaid debt due to complex payment structures, project delays, contract disputes, cost overruns and client insolvency. The intricate relationships between contractors, subcontractors, suppliers and project owners can further complicate the situation.
A legal opinion can help you find a suitable remedy, such as filing a mechanics’ or construction lien or pursuing litigation.
Professional services
Those in service-based industries like accounting, legal services, consultancy and marketing often face difficulties collecting outstanding invoices. These businesses sometimes rely on time or milestone-based billing models, which benefit from clear contracts and payment terms to avoid disputes.
Engaging a representative can offer guidance in reviewing contracts, assessing claims and employing strategies to recover unpaid invoices.
Manufacturing and wholesale distribution
These sectors face debt collection hardships due to extensive invoice payment terms, sometimes ranging from 30 to 90 days or longer. Economic downturns, supply chain disruptions and client business failures exacerbate these issues.
Someone with a background in collections law can help you develop a targeted approach, maximizing debt recovery and consistent cash flow.
Debt collection remains a significant challenge for many industries, especially in the 21st century’s fluctuating economic environment. Experienced representation can provide effective solutions to navigate barriers to payment while improving debt recovery outcomes.
