Here are three key items from your MSA that if ignored, could prevent you from getting paid by your customer.
Most agreements include directives on your customer’s invoicing process. Make sure to follow the invoicing process to avoid delay or disputes in your payments. Continued invoicing issues could even put your account into an audit with your customer.
Typically agreements include conditions on insurance policies and coverage amounts that are required to perform the work. Make sure you are meeting the required coverages and limits to remain in compliance with your customer. Loss or cancellation of proper coverage can prevent your customer from issuing you more work and hold up your payment.
Many agreements include conditions regarding liens or encumbrances that may be placed on any portion or property in conjunction with the work performed. To avoid an offset or delay in your payment, make sure that all parties capable of filing liens have been paid in full and you retain proof of those payments.
It’s a good practice to review every MSA. Making sure you are in compliance with these three items is an excellent way to avoid payment issues.
As part of our value-added services at TCI Business Capital, we can help confirm your MSA compliance to make sure you meet your customer’s requirements and get you paid in a timely manner.
Since 1994, TCI Business Capital has provided invoice factoring services to get companies paid the same day on their invoices. To learn more about our factoring programs, give us a call at (800) 707-4845 or contact us on our website.