Missing a lien or bond deadline is more than just a paperwork mistake—it can mean the difference between securing your receivables or losing them for good. Nicole Hicks, Director of Credit at Elite Roofing Supply, knows this all too well. She’s faced the challenges of last-minute filings, county delays, and invoicing issues firsthand, as she shared in a BuildingBlocks webinar on securing A/R. She leads ther team in implementing a proactive approach that ensures they never misses a critical deadline.
Here’s how she does it—and why every credit team should take notice.
Tracking Deadlines Daily: Don’t Let One Missed Date Cost You
Nicole’s team manages tens of millions in receivables on construction projects, and missing a lien deadline could leave them unprotected, risking a significant portion of revenue. They’ve encountered moments when critical filing deadlines nearly slipped through the cracks but were able to flag them just in time, preventing the loss of lien rights on key projects.
She emphasizes that her team tracks every lien and bond deadline daily—no exceptions. With high stakes, they rely on Handle’s lien management platform to keep every team member updated, ensuring no deadline is missed. Before adopting Handle, Nicole struggled to track company-wide lien deadlines, with each credit manager handling individual portfolios.
Now, Handle’s dashboard offers a real-time, high-level view, eliminating the need to dig through individual reports.
Previously, when managing a large volume of projects, Elite’s team had to input project data into both their ERP system and a separate lien tracking system. This duplicated effort caused unnecessary delays and errors.
“One thing that drove me bonkers is having to enter things multiple times in multiple spaces. There’s just so much room for error when you’re doing that,” Nicole shared. With Handle, the project data is automatically populated into the lien tracking system, allowing the team to focus more on managing receivables than data entry.
File Early or Pay the Price: Avoid the Stress of Last-Minute Lien Filings
Nicole’s team quickly learned that waiting until the last minute to file a lien is a risky gamble. One near-miss involved a major project, where they were on day 85 of a 90-day lien deadline, but the county office couldn’t process the filing on time because someone was out sick.
Since then, Nicole’s team has established a policy of filing with an extra 14 to 20 days of buffer time, depending on the customer’s risk and the project’s size. Waiting until the last minute puts lien rights at risk, and Nicole’s approach avoids the chaos and expense of last-minute filings.
While Handle provides visibility into state-specific deadlines, Nicole also stresses that ensuring every credit team member knows these timelines is crucial. “Make sure that your team is aware of the state’s statute and what those deadlines look like, and give yourself padding to ensure follow-ups aren’t set too close to the filing date,” she advises.
Align Your Billing Cycles or Risk Falling Behind on Lien Rights
Elite Roofing Supply, headquartered in Arizona, operates in several states, including Texas and California. In one case, they discovered that certain branches were not processing invoices promptly, delaying lien filings and jeopardizing several high-value projects.
“If they’re not invoicing and the information isn’t popping into our system timely, it makes it really difficult for us to do our job and execute timely,” she explained.
Delayed or misaligned invoicing can put lien rights at risk for companies with multiple branches. Nicole took action to orient credit managers in aligning billing cycles with lien deadlines, streamlining the process, and avoiding potential delays.
Spotting Invoice Mistakes Early to Protect Payments
There was a situation where invoices were mistakenly applied to the wrong project, unnecessarily extending deadlines and risking lien rights. With Handle, credit teams get instantly alerted if an invoice appears to be linked to the wrong project, allowing them to correct errors before they become costly. “Handle has a little flag that pops up to let us know if there’s an invoice with an address that varies from the original project address,” Nicole shared.
A Simple Call Could Save You from a Missed Payment
Elite Roofing often deals with high-risk projects where payments are delayed until the very last minute. On a recent critical job, Nicole’s team proactively contacted the customer 30 days before the lien deadline, reminding them of the upcoming payment requirement and that Elite can exercise their lien rights in case of non-payment. This early communication prompted the customer to prioritize their payable, avoiding the need for a lien filing and ensuring cash flow stayed intact.
“We reach out to customers to let them know a month out that we have lien deadlines coming up, so they know what they need to work on,” Nicole stressed. Waiting for customers to act puts collections at risk, especially on high-value projects. Proactive communication ensures timely payments and prevents messy disputes.
Get Ahead of the Deadline to Get Paid
Nicole’s team at Elite provides a powerful example of how credit professionals can effectively manage lien and bond rights, ensuring deadlines are never missed and prompt payments are encouraged. By proactively tracking deadlines, aligning invoicing practices, communicating with customers, and building in extra filing time, they keep their accounts receivable secure and avoid costly mistakes.
If you want to protect your lien rights and improve cash flow, now is the time to take a closer look at your processes.
Are you giving yourself enough time to file? Are your branches aligned with your deadlines? By taking these steps, you can stay ahead of the curve and keep your lien rights secure.