Construction Debt Collection in New Jersey
Construction Debt Collection in New Jersey
A myriad of federal and state regulations makes collections in the construction industry one of the most complex types of debt in the country. Laws vary from state to state. These complexities lead certain collection firms to become subject matter experts through extensive experience. Construction materials companies and contractors who want to retain the services of a bonded collection agency should opt for a firm with many years of experience in construction debt collection in the NJ/NY Tristate area.
New Jersey Statute of Limitation
The Statute of Limitations in New Jersey is four years for goods and six years for services. Although this does not prevent a creditor from seeking payment after that point, there is the potential for the Court to dismiss any action started to recover a debt that exceeds those time frames.
Construction Debt Collection Timelines
Quick follow up is crucial when it comes to construction debt collection. An overdue account becomes less and less collectible each day. You should begin the collection effort once the statement has aged past your payment terms (Net 30 days, Net 60 days, etc.). It is also good practice to contact the customer 10-15 days from the date of invoice to confirm they received your invoice and that there are no issues with the invoice. Doing this helps to avoid excuses for non-payment later. Make sure your company's collections team has clear policies and procedures in place regarding how to deal with delinquent accounts.
Experience in Construction Debt Collection
There are many pitfalls when it comes to construction debt collection. The right expertise can streamline the process. A knowledgeable debt collection firm can help you maintain steady cash flow and minimal bad debt write-offs. Let a bonded debt collection agency with unparalleled experience in construction industry collections handle your uncollectible or problem accounts.
The Kaighn Company has been a trusted name in the collection industry since 1910. Our hand-picked staff deeply understand the nuisances of the New Jersey construction debt collection.
Schedule your risk-free debt evaluation: call 908-319-5155 or email cmdevito@kaighnco.com.