Tag: Legal

A recent arrest tied to a significant fraud ring highlights the powerful results that can be achieved through advanced risk management, real-time intelligence and coordinated teamwork. On Friday, March 20, law enforcement apprehended suspects in Forest Hill, Maryland, marking a major milestone in an investigation that directly impacted NACM-member businesses.

No matter how sound your credit policy or how thorough your practice, bankruptcy can strike without warning. One day your customer is current and the next, they’ve filed. And when they do, the payments you worked hard to collect could be at risk of being clawed back through a preference claim. 

Construction credit is a highly volatile business, in which risk is contingent on the project’s progress and outcomes. Cash flows down the “ladder of supply,” a tiered structure that determines when each stakeholder receives payment. With suppliers at the lowest tier, credit professionals are typically the last to obtain funds.

The U.S. Postal Service clarified in a Dec. 24, 2025 rule that postmarks reflect when mail is processed at a USPS facility — not when it’s dropped off, accepted at a counter or stamped in a mailroom.

Credit professionals handle confidential information day-in and day-out as they manage customers and work to mitigate risk. While confidentiality comes with the job, it is critical that credit managers understand what can and cannot be shared with those outside the credit department, whether they’re talking to a member of their sales team or a credit manager from another company.

The Disadvantaged Business Enterprise (DBE) Program, a federal program that offers marginalized businesses a fair opportunity to compete and thrive in competitive business environments, is being overhauled by the federal government, leaving credit managers working with DBEs in unfamiliar territory.

Those in credit management know the feeling of dread that comes from a slow-paying customer, or the anxiety sparked by a customer who doesn’t pay at all. Troublesome payment habits can weigh on credit professionals, but they also prompt an important question: when is it time to pursue legal action?

A new law in California went into effect July 1, increasing regulations on business-to-business transactions by broadening consumer protection laws to include the commercial debts of small businesses. While credit professionals with customers in California are familiar with the RFDCPA, the newly expanded scope of the law places commercial creditors in unfamiliar terrain, prompting the need to reconsider California debt collection practices.

Lien rights are the backbone of any risk mitigation strategy in the construction credit field. There is a lot to consider when filing a mechanic’s lien, and it can be a bit of added stress for credit managers still getting their footing in the industry. However, it is a crucial step in protecting your interest and mitigating risk during construction projects.