On July 18, 2013, the Austin Court of Appeals issued a memorandum opinion affirming in part a trial court judgment which held that a stable employees’ smoking while working in the barn was a material breach of the boarding agreement, allowing several boarders to move out without notice.
After a boarder saw and photographed a
It’s finally raining in Texas! And grass is beginning to grow in pastures following the crippling drought brought on by Texas’s “Nuclear Summer of 2011”. Horse businesses in many parts of the country have only relatively recently begun to purchase round bales and make other preparations for winter. But most operators in Texas have been
In these economic times, horse industry businesses need to make sure they are effectively managing their credit, as well as their client relationships.
Many equine-related businesses owners have occasion to extend credit to their customers or clients. First of all, it is important to get everyone on the same page with respect to billing. “Everyone” includes you, others in your office who have client contact, and the client. For example, everyone who deals with your accounts should know when statements are mailed, when payment is due, and when or if the client may spread out payment over a number of installments. Similarly, your customer or client needs to clearly understand your expectations regarding payment.
Your spoken words and your actions must match your paperwork and billing terms. This is one of the weakest areas for many horse businesses in debt management. I have seen, for example, many people who believe someone is boarding or training their horse for free in exchange for a commission when the horse is sold, only to receive a bill in the mail months later for thousands of dollars of boarding and training services. When this occurs, there is a much higher potential to really upset a client who believes your rules have changed between what was verbally offered and how they were actually billed.
The following are some things you can do to avoid having to collect a debt in the first place:
1. Have clear, written terms from the outset. You need to give your client a written confirmation of the product or service you will be providing before you provide the product or service. The initial agreement should be signed by both you and the client.
2. Publish your terms frequently. Your terms should be published frequently after the original agreement. For example, the payment due date should be printed on each statement.
3. Send out detailed statements. You should bill your clients at least once per month, and the bill needs to be as detailed as possible. People are more likely to pay a bill and pay it on time when they fully understand all the services that were performed. When a client sees a general entry such as “vet services” on a bill, for instance, when the client had no idea a veterinarian had treated their horse, the client may become suspicious that you are divvying up your vet expenses equally among all clients, whether that particular client received the vet service or not.
4. Invoice clients on a consistent billing cycle. Once a product or service has been delivered, invoice the client as soon as possible. Whichever date you choose to send out bills, send one out at least once per month on that same schedule as long as you are providing services or waiting for payment.
5. Encourage prompt payment. To encourage the prompt settlement of bills, offer an incentive such as discounts for early payments (while always balancing the extent of the price cut with the benefits of an improved cash flow).
For more debt collection tips, continue reading.Continue Reading How to Successfully Manage Credit in a Tough Economy
In many cases, the proceeds from a stock breeder’s or stable keeper’s lien foreclosure sale will not be enough to satisfy your debt. In those cases, you may sue the owner for the deficiency, if any.
The law suit may not be worth it, however, as you could end up spending more on legal fees
Texas law provides liens for two specific types of services provided to horse owners: boarding services (the stable keeper’s lien) and breeding services (the stock breeder’s lien). This blog provides an overview of the stable keeper’s lien.
How does a stable keeper’s lien work? The Texas stable keeper’s lien, also known as an “agister’s lien,” is