The concept of liens reminds us of the age old barter system. When there was no court or right to protect an individual, people followed the most basic principle of trading goods and services – the barter system. This system was founded on the simple philosophy of exchanging one good or service for another. These were paperless and cashless transactions. There was no guarantor; there was no law; and there was no obligation. Doesn’t the simplicity of this trade system amaze you? Even when there were no real theories and practical business concepts, traders in that era carried out their routine activities with such ease.
Today, as we have several theories to guide us and laws to protect us, we feel more unprotected than ever before! It is so ironic. However unfortunate, we cannot deny the testing times we live in these days. Even though there are laws to protect businessmen, the legal wars are often long and tiresome. Nobody wants to get themselves involved into legal battles. And it is not uncommon to witness cheats and frauds in business transactions. In fact, such dealings are a daily occurrence. It is to safeguard the interests of such innocent businessmen who suffer at the hands of deceitful dealers, that the concept of commercial lien is gaining popularity.
Commercial lien is a simple idea which can be implemented by anyone and everyone. It is to benefit the public at large. Alien grants you with the same power than any legal contract would. The only difference is that a lien allows you to make off-court settlements. Using a lien as a guard of protection is an intelligent step, as it is a much more cost effective and time saving approach. In other words, the lien in itself is like an insurance cover against the credit facility given to another party. In case the debtor fails to pay in time, the lienee (the person who holds the benefit of the lien) can use the lien in his advantage to extract payment from the debtor. You should understand that the property mentioned in the lien cannot be sold. You can only use it in other ways to recover your money.
Although the concept of using a commercial lien may sound extremely easy to execute, you should be over cautious while enforcing it. Great care should be taken from the beginning. The process of drafting notices is especially important. Giving out notices is of key importance to this process. You cannot afford to go wrong with the language used in the notices. Also, keeping track of the schedule and deadlines is another step that cannot be ignored. It is highly recommended that you take help of professional services through the whole process. You may have to pay a hefty cost for even a small mistake at your end. Therefore, it would be a smart move to hire an expert to help you throughout the process, right from drafting the lien, sending out notices, and keeping track of the important dates, and also in the recovery of debts if required.