I am a construction business owner and the client has fefused to pay me the 100k he owes. They are claiming that there bank is refusing to loan any more money.
2007-01-29 13:28:20 · 8 answers · asked by marcoacepolo 1 in Business & Finance ➔ Small Business
Their financing problems are not your problems -- they should have had their financing lined up before signing a contract and letting you do the work.
Put a mechanic's lien on their home (this is perfectly within your rights), and go see a lawyer. $100k is worth going after, and if it can be shown they knew they would not be able to get more funding, they could also be criminally liable.
2007-01-29 13:32:35 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Well, as a business, when you do your financial statements, I'm sure you are aware that you are suppose to estimate the bad accounts receivable as expenses. There are 2 reasons that you wouldn't wanna take action to force payment until some time has passed since the transaction was made:
1. Since if you do so, and the court rules that your client must pay you, and he does not have the money, then he could declare bankruptcy.
2. Your business's reputation will go down and lose clients because clients look for the most flexible company to do business with, and usually, asking payment constantly is irritating.
2007-01-29 13:35:32 · answer #2 · answered by The Answerer 3 · 0⤊ 2⤋
You probably already have a lien on the property you built for your client,,,you will need to obtain a lawyer, and force the sale of the property in question to get your money back, plus interest, and applicable attorney fees, all of which you are entitled to. If you don't have a lien on the property, get one now and fast before it is sold out from under you.
2007-01-29 13:36:20 · answer #3 · answered by justbipolar 2 · 0⤊ 0⤋
While I don't know what state you are in, I am hoping you purchased insurace on such a big project. Either way I think you need to speak to a lawyer asap. That's what I do. I am a freelance graphic designer for the last 10 years - and while my sums don't get that high very often, the only way out is to get a lawyer on it. Failing that you maybe could contact your local representative or council person and see if there is anything he can do. You'd be surprised how they can help sometimes.
Peace!
2007-01-29 13:32:01 · answer #4 · answered by carole 7 · 0⤊ 0⤋
Get an attorney, and most likely you will own the property, or at least you can freeze it and get it settled. You should have had all things set up so you were not behind in receiving moneys for what was to be done. There is a lot not disclosed in your question.
2007-01-29 13:40:20 · answer #5 · answered by Anonymous · 0⤊ 0⤋
The bank is not your problem. File a lien on the property. Go after the owner's personal assets.
2007-01-29 15:12:55 · answer #6 · answered by Anonymous · 0⤊ 0⤋
OOPs! I hope you have filed liens on the property.
Probably this would be a great time to check with your legal advisor to see what options are open to you.....good luck.
2007-01-29 14:23:41 · answer #7 · answered by smiling_freds_biz_info 6 · 0⤊ 0⤋
Are you trying to sell them something that there bank has deemed not worth as much?
2007-01-29 13:32:11 · answer #8 · answered by Betty Boop 5 · 0⤊ 1⤋