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5 Reasons to Drop the Demand Letter and go with the Notice of Intent to Lien
5 Reasons to Drop
the Demand Letter
and go with the Notice of Intent to Lien
1. Demand Letters are TOOTHLESS
Demand letters are easy to ignore.
They're not much different from an email reminding yourcustomer to respond to that invoice of yours that's beensitting on his desk.
2. Demand Letters are NOT INDUSTRY-SPECIFIC
A demand letter is a one-size-fits-all document.
Whether you're sending it to a prime contractor to demand paymentfor laying foundation, or to your neighbor to ask for babysittingmoney you're owed, all demand letters are the same.
The Notice of Intent to Lien (NOI) is industry-specific, and industry-specific tools are more effective. They show that you're informed,that you're equipped, and that you mean business.
3. NOIs Threaten IMMEDIATE ANDTANGIBLE Action
A Notice of Intent to Lien lays out specific and timely follow-upactions. If you are not paid, then you will file a mechanics lien.
As such, an NOI can also help your customer avoid a lien. It is awarning (rather than a demand), albeit a warning with specificconsequences.
4. NOIs Involve EVERYONE on the Project
When somebody files a mechanics lien, it involves the propertyowner, the project lender, and likely the general contractor.
As a Notice of Intent to Lien does exactly what its name says, it'smore effective than a demand letter at encouraging your customerto pay.
Your customer won't want to be responsible for a mechanics lienbeing filed, and they certainly won't want to explain to the propertyowner why that happened.
5. NUMBERS Don't Lie
The research is in.
According to a recent survey conducted by zlien, nearly half of allNOIs sent secured payment within 20 days of delivery.
Compare that to demand letters, which rarely return paymentwithout further legal negotiations.
