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Does a WinGate Financial Notice of Intent to Lien Create Payment?

Chris Brashear, CFO & CPA   October 28, 2024

How Does a Notice to Lien Create a Payment?

A Mechanic’s Lien is one of the most powerful tools afforded to a contractor when payment is in jeopardy.

Although there are various process requirements from state to state, all require a documented and tracked notification to the payor. This notification allows the payor to verify the information, and if that the owed amount is accurate. The letter serves as official notice that the payee intends to encumber the property where the work was performed.  

A Notification of Intent to Lien has very specific requirements that must be adhered to in order to preserve the Mechanic’s Lien rights. If a notice is missing critical format or data, then the Mechanic’s Lien can be declared faulty and may not be effective. Because the time window for the Mechanic’s lien is so narrow, when a mistake is made, the potential right to protect oneself can be eliminated altogether. 

The timing regarding when a mechanic’s lien can be utilized differs somewhat by state, usually from 60 days to 120 days from the date of last work on the project. 

An effective Notice of Intent to Lien must either be delivered by personal service or by registered mail with a return receipt requested. The attempt must be made at the last two known addresses of the payor. It must also be served upon property owner at least 10 days before the lien is filed.

The content of the Notice of intent to file is also prescribed and must include a clear intent to file the lien should payment not be made. A specific deadline for the payment to be made and the amount owed, including the detail for any fees or interest being included.

The property where the work was performed must be clearly described with an accurate legal description as designated by the county property assessor. Here is an example.

R1963786 Parcel 095903419002

GR WMW19-2 L2 BLK 19 WESTMOOR WEST.


Wingate Financial Partners has built an internal system for filing mechanic’s liens and is excited to offer a FREE legally compliant “Notice of Intent to File” introductory offer. By simply loading your documents regarding the debt into our online LienLok portal, Wingate will prepare and deliver a Notice of Intent to Lien anywhere in the United States. This alone may encourage payment. If payment has not been forwarded, LienLok will reach out to you at or about the 10th day to see if you would like to move the lien forward. Wingate can at that point execute the mechanic’s lien for you and your team for one low price. Again there is no obligation to move this forward and we look forward to hearing from you and offering this value add feature to any contractor in the United States!

WinGateFinancial

A wooden ladder is sitting in the doorway of a brick building under construction.

The Difference Between WinGate Instant Asset Funding & Factoring

By Chris Brashear • October 28, 2024
Wingate goes where no factoring company has ever dared to go! Predictivity is a necessity for a financial services firm offering invoice factoring. If you hope to survive in this industry, definable variables, such as selling price, typical vendor payment terms and a planned profit margin flow through to an understood formula that can help assure profitability. We see this in practice with most factoring firms pursuing the market segments where these factors can be controlled with little unexpected variance. Enter Wingate Financial Wingate has chosen to offer cash to contractors who are not only waiting to be paid but are waiting for the insurance industry to pay the customer who will then ultimately pay Wingate. Not only is the timing of the payment unknown, but in many cases even the amount being purchased from the contractor hasn’t fully been established yet. “This is precisely the reason Wingate sees an opportunity to serve the contractor who is paid largely from insurance carrier claims, like a roofer or a restoration specialist.” A project can be completed for months before the details can be reviewed by an insurance carrier and then the negotiation ensues. This delay can cause unexpected cash valleys for the contractor. Wingate has acquired the skills to be able to review a “pending” payout in as little as 2 hours and make a cash payment to the contractor in 24 hours. Most offers are north of 90% of the latest approved claim amount. Never been this simple with no credit inquiry, or personal information needed. This is a specialty tool for your financial guru to have in her arsenal for when those very intense and unplanned cash deficits surface. Three simple documents are loaded, and cash is in your account by tomorrow. To our knowledge Wingate is the only financial services firm smoothing cash flow cycles for the insurance claim contractor. If you would like to discuss a potential payout or just ask a few questions, please call Chris Brashear directly at 970-617-4189.
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