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More About E-Collection:
Collect Your Money with the Click of a Mouse
Collecting money can be
one of the toughest tasks for both large and small
companies in the construction industry. In fact, construction actually leads all other industries in the late-pay category
with an average turnaround time for payment of 69 days.
As a result, money is typically in short supply and achieving the necessary cash flow to support operations is often a
serious concern. We all know just how hard it is for contractors to collect
from owners, for subcontractors to collect from contractors, and for suppliers to collect from just about everyone.
Factor
in pay-on-pay contract clauses and collection gets even more difficult.
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Due to the short supply of cash within the construction industry, there is an increasing tendency for contractors to extend
a pay-on-pay attitude even to its suppliers.
In real terms this means that payment for products or services are sometimes
made only after the company highest in the chain has been paid for completed work.
This particular behavior within the industry has created a push-pull relationship between parties to a transaction.
A
party that is owed money can be driven to consider or threaten disruption of supply or services in order to encourage payment,
even though they would prefer to keep their customer. The party that must pay for products or services does not want them to be
suspended and, most likely, wants to make good on their obligations, however they may not have yet been paid in full themselves
and may need all available cash to continue operations. It's a real Catch-22 situation.
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Regardless of where you are located in this money chain, the only guarantee you have is that you'll be one of the last to
be paid unless you take an early and proactive approach to collecting your money.
Even then you could be faced with the
very real risk of non-payment on projects that could potentially run out of money.
Many construction companies have gone out of business, not because of poor performance, under-pricing or lack of control, but
simply by running out of money.
Construction-related companies must succeed in collecting money in order to avoid the pitfall
of working capital shortages.
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The inherent problem is that there is no incentive for any one company to make early payment to another when they have not yet
been paid themselves.
Why should they? The bottom line for them is that they will lose whatever interest they are earning or,
on the other hand, incur interest on the money they have borrowed.
Our collection system is centered on prompt payment discount incentives to encourage payment.
If your company is willing to
provide such incentives, wishes to keep your customers happy and to give yourself the best chance of collecting, our E-Collection
solution will work for you.
We deliver your money at the speed of the Internet.
Check out further details of our unique solution to your collection problems
and then give it a try - free of charge. That's right.
You pay nothing unless we deliver! Always remember…Time is truly Money!
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