Six jansan-specific collection pain points
BSC cash-flow stretching
Building service contractors bill clients Net-45 and pay you Net-60+, turning your Net-30 invoice into a 90-day cycle by design.
Facility-management change-outs
The manager who opened the account leaves; the successor disputes every invoice back to the start.
Short-pay on spec substitutions
Customer claims you shipped a different grade liner, detergent, or paper, and short-pays 20% without notice.
Unpaid equipment leases
Floor machines, auto-scrubbers, dispensers placed on the customer's floor — non-returned and unpaid after default.
National-account pass-through
Chain customer's corporate AP bounces invoices back to the local jansan distributor as "store responsibility."
BSC bankruptcy or dissolution
BSC closes mid-month leaving $40K+ on the books; owner disappears without responding to demand.
California legal framework we use on jansan files
| Claim or remedy | Authority | Distributor use |
|---|---|---|
| Goods sold and delivered | Cal. Com. Code §2709 | Action for the price where goods accepted or resale not feasible |
| Resale damages | §2706 | Resale of rejected / returned goods and recovery of differential |
| Open book account | CCP §337a | Four-year limit on running unpaid invoice ledger |
| Account stated | Common law + §337a | Unrebutted monthly statements = acknowledged balance |
| Prejudgment interest | Civ. Code §3287, §3289 | 10% or contract rate on calculable balance |
| Attorney's fees | §1717 | Reciprocal fees clause in credit application |
| Returned-check damages | §1719 | Treble damages on dishonored checks after statutory notice |
| UCC-1 purchase-money security | Com. Code §9103, §9502 | Security in equipment placed with customer |
| Fraudulent transfer | Civ. Code §3439 | Reach assets moved before BSC dissolution |
Live savings calculator
Three anonymized case studies
Orange County BSC default
Jansan distributor supplying a 30-building BSC; BSC lost its anchor contract and stopped paying 11 weeks of deliveries. Recovered via demand + personal guaranty enforcement in 34 days. Client paid 15%.
Healthcare facility group short-pay
Facility claimed can-liner spec mismatch, short-paid 22 invoices. Spec sheets and shipping docs produced during Day 7 call; full balance paid Day 16.
Restaurant-chain franchise group
12 franchise locations; national corporate bounced invoices to franchisees. Pursued each franchisee plus corporate guarantor. Full recovery in 97 days.
Contingency fee math at your account sizes
| Balance | Traditional agency (33%) | LegalCollects.ai (15%) | Savings |
|---|---|---|---|
| $10,000 | $3,300 | $1,500 | $1,800 |
| $25,000 | $8,250 | $3,750 | $4,500 |
| $50,000 | $16,500 | $7,500 | $9,000 |
| $100,000 | $33,000 | $15,000 | $18,000 |
| $250,000 | $82,500 | $37,500 | $45,000 |
Intake checklist (what to send us)
- Signed credit application with fees clause and personal guaranty (if any)
- Invoice ledger with PO references and proof of delivery (signed BOL / ePOD)
- Statement-of-account printout showing running balance
- Any email correspondence acknowledging the balance or disputing specific invoices
- UCC-1 financing statement (if equipment was placed)
- Contact info for the AR person, the facility manager, and the corporate owner(s)
- Any returned checks and the NSF notice history (for §1719 treble damages)
FAQ
What if the BSC is now out of business?
We pursue personal guaranties, UCC-1 collateral, and — where warranted — §3439 fraudulent-transfer actions against new entities operating with the old customer base.
Will collection risk my future relationship with the BSC's parent or franchisor?
Our sequence is firm but non-antagonistic. Most clients continue supplying the parent and franchisor, who often welcome that a bad-actor BSC is being held accountable.
Do we handle small-dollar invoices ($2K–$5K)?
Yes, with aggregated demand — we consolidate multiple small invoices from the same debtor onto one sequence to keep unit economics sensible.
How does pricing interact with §1717 attorney-fee awards?
Any §1717 fees recovered accrue to the client net of our 15% contingency. We do not double-dip on fee awards.
What does intake look like in practice?
Send us the seven items above via our secure intake portal at legalcollects.ai/submit. Within 24 hours we confirm coverage, build the case, and begin the 30-day sequence.