Areas of Practice
Contracts/Collection Disputes
Most people don't pay attention to a contract until there is a problem. Mr. Fish has extensive experience assisting his clients draft contracts and has litigated countless cases involving contractual disputes. In addition, The Fish Law Firm is there to help when its clients do not get paid. Read the following tips about how to get paid by your clients/vendors/customers in an article written by one of our lawyers:
How To Get Paid In A Tough Economy
Chicken Little—The Sky Is Falling! Or so it seems.
Unfortunately, businesses in virtually every industry are being directly impacted from this tough economy--by customers not paying, contractual partners filing/threatening bankruptcy, and by increased borrowing restrictions due to the financial meltdown.
There is good reason to be vigilant: after all, if Lehman Brothers--a 158 year old company with impeccable financial ratings can go bankrupt—can’t your customers?
While we cannot control what the economy will do, smart business owners can increase their chances of getting paid by following these tips:
(1) Control The Cash: If in doubt about whether you will be paid (whether for services, a product, or otherwise), require cash up front. If a customer is not willing to pay up front, what makes you think they will pay you when they don’t need you anymore? On the other hand, if you are the one paying, then pay as little money up front as you can. For example, if you hire a contractor to work on a project, don’t pay a significant amount of money before the work is complete. Even reputable and well-intentioned contractors in this economy are going bankrupt. Once they do, you will be out of money--and your project will not be complete.
(2) Require A Personal Guaranty: Corporations, by law, shield their owners from creditor claims. In other words, when the corporation goes broke, creditors typically cannot recover money from its owners. To get around this legal impediment, make a corporation’s owners personally guaranty your payment. If they are not willing to put their own money at risk, why should you put your money at risk? When was the last time you borrowed money from a bank without a personal guaranty? Probably never; banks are smart--they typically require a personal guaranty.
(3)Due Diligence: Do your homework before taking on new customers/clients to make sure they can pay. Do they have a good report from Dun & Bradstreet? How are their credit references? How much cash do they have, what are their assets, how is their cash flow?
(4) Have A Strong Contract: A contract should be written so your customers/clients will want to pay you--instead of other creditors. As just one example, charge interest if payments are late. Otherwise, you essentially become like a bank providing an interest free loan. Who would you pay first: a creditor who is charging late fees and interest and has a personal guaranty against you-- or a creditor who charges no interest and has no right to take your personal assets?
(5) Don’t be Nice: When someone owes you money, don’t take excuses about non-payment. It’s almost certain that if they are not paying you, they are not paying a lot of other creditors. The squeaky wheel gets the grease—and the understanding creditor gets nothing. Let the other creditors suffer, but make sure you get paid.
Our Naperville, Illinois law firm represents clients throughout Illinois, including DuPage County, Cook County, Kane County, Will County, Aurora, Oak Brook, Naperville, Joliet, Plainfield, Wheaton, Downers Grove, Chicago, Elgin, and others.
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