Entrepreneurship & Small Business

Business lien on a customer with debt

  • Last Updated:
  • Jun 4th, 2018 12:42 pm
Apr 17, 2013
46 posts

Business lien on a customer with debt

We have a customer with outstanding balance of 8K who doesn’t want to pay it out. My boss asked me to find out the procedure how to put lien on the business an what is processing and any other fee if applicable.
1 reply
Deal Guru
Aug 2, 2010
14329 posts
Here 'n There
Unless it's a construction lien you can't just proclaim of your own accord that a customer owes you money and place a lien on their business. If it was that easy we'd all be doing it! You need to prove the debt is owed and that involves going to court and obtaining a judgement against the debtor. Even with construction liens you may have to sue to perfect the lien. When you obtain judgement then you file a writ with the County Sheriff and try to collect on their assets if you can find them.

Your only other avenue is using a collection agency but they have no power to extract payment except constant harassment via letters and the phone.