How to Get a Lien on Warehouse Freight
Running a warehouse involves scheduling and logistics. Unfortunately, like any other business, it requires collections. Every piece of freight stored in your warehouse is using valuable real estate. The cost for the storage of items in your warehouse depends upon your overhead and profit expectations. Customers who do not -- or cannot -- pay your warehouse fees must be put through the collection process. This process includes holding the unpaid freight as collateral, obtaining a judgment and requesting a lien. Obtaining a lien from your local civil court requires you to handle the collection process in the proper order.
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Instructions
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Sign a contract with each new client. Stipulate warehouse fees and payment schedules in your contract.
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Receive freight into the warehouse and store it as per the outlines in your contract. Provide appropriate shelter and security for every piece of freight.
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Bill the client as per your contract guidelines. Send either a hard copy or electronic invoice to every client each month.
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Send a second and third notice at 30 days and 60 days past the due date of the payment. Send these late notices as hard copy via certified mail.
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Move any freight with an unpaid warehouse bill into a secure location after 90 days of the bill coming past due. Lock the freight in a separate part of your warehouse and monitor it closely to prevent damage.
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Send a new bill to the client after the 90 day move. Remind him of the past due amount; also give him notice that the merchandise is locked up until payment is received in full.
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Take your contract and copies of your correspondence to the civil court clerk's office. File a lawsuit to recover your money. Submit your documentation to the court as evidence. Attend court and present your case to receive a judgment and lien against the delinquent client.
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Tips & Warnings
Fraud is a felony. Make sure that all of your paperwork is accurate so that it will be admissible in court.
Consult an attorney to check your local and state laws for the exact order of this procedure in your state.
References
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