Contracting / Construction Debt Recovery & Mechanics Lien Enforcement

1. The Construction Cash Flow Epidemic: Your 94-Day DSO Solution

The greatest financial threat to the construction industry is not market volatility—it is payment delay. In 2024, the cost of slow payments reached a staggering $280 Billion in the U.S., driving cash flow instability across the supply chain.

If your firm’s average Days Sales Outstanding (DSO) exceeds 60 days, you are shouldering unnecessary risk. NexaCollect is a specialized commercial collection agency built to tackle the industry’s current average 94-Day DSO head-on.

We are not a general debt collector. We are construction finance recovery specialists.

The Problem (2024/2025 Data)	The NexaCollect Solution
82% of Contractors face payment delays exceeding 30 days.	We initiate legal and financial pressure at Day 31 to maximize recovery velocity.
Delays are masked by excuses like “Pay-When-Paid” clauses.	We immediately deploy Mechanics Liens and Surety Bond Claims—legal tools that supersede contract excuses.
Traditional collection rates are poor (20-30% average).	Our specialized B2B focus delivers proven recovery rates that can reach 70% on viable commercial debt.

2. Specialized Recovery for General Contractors & Subcontractors

Your debt collection process must be an extension of your legal department. We specialize in the two most powerful collection levers in the construction field:

A. Mechanics Lien Strategy & Enforcement

A lien is the ultimate form of payment leverage. We don’t just file paperwork; we manage the complex, state-specific legal timeline to ensure your claim is valid and enforceable.

• Preliminary Notice Management: We guarantee the timely service of all statutory notices (Notice of Furnishing, Notice to Owner) to secure your lien rights from the first day of work.

• Lien Triage: We evaluate your project documentation (AIA Contracts, Change Orders, Pay Applications) to build an irrefutable claim before the lien is filed, preventing costly legal counter-disputes.

• Deadlines Secured: We ensure your claim is filed and served before the state’s stringent deadlines expire (often 90 days from the last day of work), protecting you from an automatic write-off.

B. Surety Payment Bond Claims

For public or bonded projects, the payment bond is your guarantee. We know how to navigate the complex Miller Act (federal) and Little Miller Act (state) requirements:

• We manage the strict deadlines for serving the Notice of Non-Payment to the General Contractor and the Surety.

• We file the formal bond claim against the financial institution guaranteeing payment, bypassing the GC’s cash flow entirely and accelerating the recovery process.

3. Financial Institutions: NPL Portfolio Management & Compliance

We partner with banks, asset-based lenders (ABLs), and construction factoring companies to manage Non-Performing Loan (NPL) portfolios and high-volume commercial receivables.

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The AI-Driven Advantage

Banks demand a modern, compliant, and predictable recovery workflow. NexaCollect leverages AI and predictive analytics to transform your recovery outcomes:

Metric	Why it Matters to Lenders	NexaCollect’s Impact (Based on Industry Benchmarks)
Predictive Scoring	Identify high-risk accounts early in the collection cycle.	Accounts are prioritized based on likelihood of payment, not just age, leading to faster case resolution.
Compliance Automation	Mitigate reputational and regulatory risk.	Real-time monitoring against all FDCPA/state regulations, leading to a significant reduction in potential legal exposure.
Operational Efficiency	Reduce the cost of collections (Cost to Collect).	Technology-driven processes can lead to a 40% reduction in operational expenses compared to manual collection efforts.

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4. Frequently Asked Questions (FAQ)

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Q: At what stage should I send an account for collections?

A: We advise outsourcing commercial claims between Day 31 and Day 60 past due. This is the optimal window where the leverage of the Mechanics Lien is fully intact, and recovery probability is at its highest.

Q: Do you collect in all 50 states?

A: Yes. Construction law is hyper-localized. We maintain the national compliance and legal network required to track the varying lien, bond, and preliminary notice deadlines across every U.S. state.

Q: Will this ruin my relationship with the General Contractor?

A: We act as a professional, third-party buffer. By outsourcing the recovery, you maintain an open door for future business relationships while we handle the necessary financial pressure. Our process is designed to be firm, legal, and professional, not aggressive.

Q: Do you require a retainer or upfront fees?

A: No. We operate on a No Recovery, No Fee commercial model. We are only compensated when we successfully recover your capital.