Integrating Lien Search into your business – as a matter of policy
Have you been considering using lien search as a company policy? Consider these points when making that decision
- Make it Mandatory – Salespersons need to know that lien search is mandatory on equipment moving within your company. Generally, companies have a policy of liability by dollar amount. i.e.: Any equipment over $15,000 requires a lien search before funds will be paid to the seller. All relevant liens need releases.
- Have a policy – Have a policy on tax lien and civil judgment searches. Some companies require this and let me know. No matter what request I receive from the salespersons, I know what the company requires.
- Know your options – Knowing that lien searches average cost $123.00 (with Ground Clearance) should be a bottom line cost for your business with each piece of equipment you are interested in dealing with (whether purchase to resale, broker, or end-user). Note that is an average. The cost is dependent on where documents are coming from, how many names are being searched, what type of search you need (UCC, tax lien, judgment), and how many pages of liens are filed.
- Plan your cost – Adding a lien search is another cost to the bottom line of purchase. Let me know the dollar amount you need the lien search to stay within. If it appears it will be outside of that I will contact, you and let you know your options. We won’t upcharge to meet your maximum. We don’t work for free either though.
- Due diligence – Once the lien search is received have a process in place for following up on liens that are relevant to the equipment. These would be blanket, PMSI, surety bonded projects, specific liens, SBA liens, and possibly tax liens. You cannot legally contact another’s creditors without written authorization. Since the seller is the creditor’s customer a creditor will provide a lien payoff or release to their customer faster than someone else inquiring. We can help with this, but know it isn’t a fast process
When you implement this type of program you can use the Ground Clearance Debt Verified logo on your website and equipment marketing. Your equipment will sell faster because the buyer will see that a lien search and due diligence were done.
Provide Ground Clearance with a copy of the releases and Ground Clearance will provide documentation for the next buyer – or the bank – that the equipment is free and clear to the best of knowledge.
Let me know how we can help. We can video meet for your sales meeting to answer questions.