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Keep eye on customers’ ability to pay for your security and fire alarm services
March 30, 2020
See webinar schedule below.
Keep eye on customers’ ability to pay for your security and fire alarm services 
          A local accounting firm on Long Island [Gettry Marcus] issued a “Crisis Advisory” that I thought was especially germane to the alarm industry.  At K&K we are preparing our Collection Department and our Bankruptcy Department in anticipation of tougher times when this health crisis subsides.  We probably won’t see the impact immediately, except for the [likely many] businesses that won’t be able to re-open.  It’s fair to say that most alarm companies have many restaurants as customers, and that industry is going to be hit particularly hard.  Other industries and businesses that were unable to maintain some continuity of employment and business operation will also be hard hit:  saloons; clothing stores; furniture stores; gyms among others.  Other customers may complain but should be paying their bills, even if somewhat delayed:  property owners; landlords; banks; hospitals; insurance offices; law firms; doctor offices; surgical centers; schools; municipalities among others.  
          As you get back up and running be assured that K&K will be there to support and protect your legal interests.  As always, the alarm industry gets priority in our office and our trained staff remains available now and will continue to be there for you.
          Here’s the ideas from the article I read, mentioned above:
“ Maximize customer liquidity
          In the past sharp downturns of the economy, not enough attention was devoted to an enterprises customer’s financial status until it was too late to be proactively prudent – in other words, the horses were out of the barn and the energy to coral them becomes exponentially & financially exhausting. Accordingly, consider the following policies:

·        Immediately reconsider what is considered to be a current receivable. Change your review and dunning practices from 0 to 30 days (if that was your first bracket) to -say- 0 to 7 days. In due course you will be able to recalibrate what the new normal should be.

·        Change terms on new orders from 30 days to something more manageable in these times to -say- 10 days. Consider cash-on-delivery or letters of credit for certain customers.

·        Watch the overall credit limit by customer. For example, if a customer has an overall credit limit of $500,000, consider reducing it to a more risk tolerant level. Revisit internal controls to ensure that this threshold, as well as other controls put into place, are complied with by all.

·        Some businesses ship or do business with the same customer through two or more billing systems and/or two or more entities. Ensure that credit terms are consistently applied and that the credit extended is measured on a combined basis.

·        Obtain recent and periodic financial statements from your customers to gauge their financial condition and changes thereto.

·        Pay attention to promises made and not kept. If a customer promised payment on a certain date and it is not received, it could be a sign of more significant issues that might be occurring with that customer.

·        Watch for bankruptcy filings of your customers as these can occur quickly for a once seemingly healthy enterprise. If you have a customer where the officers have resigned, it is a clear signal that a chapter 7 or 11 filing, if not already in place, will occur shortly. If you suspect that any such filing may occur, consult with counsel before conducting any further business with such customer.

·        A poorly performing customer will not be alone. Chart the industries and/or regions your customers are in (if diverse) and understand which of those industries and/or regions have been more adversely impacted than the others – react accordingly.

Find out if your customer is still open. Ask about their operations and their supply chains.”

Webinars Series 2020 - Register now
            We are pleased to offer the below FREE Webinars. Originally scheduled as Roundtable discussions at the ISC we are now opening up attendance in webinar format. Please sign up for one or more webinars and we hope you’ll participate in the discussion.  Other webinars TBA
            For those of you who had a Free private meetings scheduled with Ken Kirschenbaum at the ISC show, please call Stacy Spector,Esq at 516 747 6700 x 304 to re-schedule the meeting via Skype
When: April 7, 2020 at 12 PM  ET
Topic:  discussion on the current state of the Financial/Capital Market Stability in the Security Industry and necessary agreements needed for security companies
Presented by:  Troy Iverson, VP of Sales, Brian Davis, CFO of AvantGuard Monitoring Centers
Hosted by:  Ken Kirschenbaum, Esq
Who should attend: owners, CFO, managers, 
Register here:  

To order up to date Standard Form Alarm /  Security / Fire and related Agreements, click here:
You can check out the program and sign up here: or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304.
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301