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With industry competition and hard market,  to recover overdue debts has become the most troublesome problem for most agents in construction machinery sector . Overdue , referring to overdue debts fail to get back on time , as long as overdue last for more than a day , saying , also known as "bad debt ."The bad debt not only affect usual business , also even drag down corporate and leap to bankruptcy
A mechanical engineer Mr. Huang in Shen yang province , in order to let enterprises to reduce the rate of overdue debt rapidly, who aunched a series of " Reform" in-house through cooperation with lawyers , he even transfer the fianl decision right of the sale of construction machinery to the lawyer. Facing the haunting overdue debts, Mr.Huang is reluctantly for decentralization, though there are some internal opposition ,. After a year of operation , the company's overdue really fall down. 
Or 120 million arrears a year
As a construction machinery businessman, Mr.Huang is very " rich" , his business sales reached 600 million in 2010
Although “He is rich “, but these "money " is invisible money, Mr Huang said: "The results do not look good with too much bad debt , 6 billion in sales , overdue debts already reached 120 million . Many debts fail to come back , either in the condition that customer ran away with machinery together , or we can find the person , but machine does not come back .  
Overdue debts not only drag down employees wages, also push the business to the edge of collapse . Mr Huang said: " Our industry is rather special, many customers buy construction machinery on installments , one common machine least priced at more than one million yuan , more expensive high to several million dollars, so as long one machine sold failed to get money back , our losses is up to hundreds of thousands , in this long-term way, Our business simply can not stand
According to the reporter , overdue debt has become a tough problem for the construction machinery industry , many large construction machinery companies have set up a special " Law Department "  to solve the overdue debt problem, the law department generally needs 10 full-time staff , all of them need to be professional law elites. "Law Department" is also a huge overhead , cost between 200 million -300 million per year.
Mr Huang said: "I also want to set up one Law Department , but ours is a minor enterprise, the Law Department is not only cost much, also not can set up in a short period."
Ask layer help to control overdue debts
In the face of overdue debt pressure , Mr. Huang began looking for ways to solve problems.
By chance , Mr. Huang meet Liu- a lawyer in Liaoning law firm. Liu lawyers has worked in one large construction machinery enterprises before, so he understand Mr.Huang’s difficulties very well.
Through more contacts , Mr.Huang Liu hired Mr.Liu as his corporate legal counsel , and to let Liu know all the bad debts of enterprise well . Through the analysis of bad debts , Liu lawyer summed up hundreds of details prone to bad debts , and drawed up a detailed risk control and money collection plan, including pre-sales risk prevention, risk control in contract implementing process , as well as legal intervention afterwards disputes  , and finally resolved last remaining debt problems through litigation.
Liu lawyer said : "In fact, a lot of construction machinery sales managers should know customers when sales begin. By convention , customer’s education is a key point , but I found this is not a decisive point. Why high-education people are willing to make repayment? For construction machinery industry summarized condition, we found that many customers with low educational level , they start business from scratch , very concerned of careers built with their sweats, so this point can not be analyzed by convention. But I found that divorced people are inclined to be high rate in arrears . 
Through a series of analyzes , lawyer Liu developed a series of customer scoring system .100 points full marks , customers who got scores lower than 70points , can not be sold products to
After be permitted , the reporter saw customer rating questionnaire designed by Liu lawyer , this questionnaire has 150 questions, questions designed to be very detailed, from real estate to family situation all involved , including the customers ‘ marriage , hobbies , and even whether they smoke , Drinks are included. In this regard, Liu said : "This questionnaire related to intellectual property rights , I can only say that every question is related with the customer's credit ."
Sale decison entirely made by lawyers
In order to let enterprises to reduce overdue debt further, Liu lawyer also launched a series of system .
Liu lawyer said : "As the enterprise involves a lot of secrets , I can only say it simply , some internally , some externally, For internal , to build system-of-customer-manager-lifelong-responsibility. even though sales completed . Once payment overdues problems arise , sales managers have a responsibility even left the company , who also jointly and severally liable . For external, the establishment of ' machinery ' tracking system, customers should regularly report ' machinery ' location , project name and progress . Customer is responsible for verifying , even equipment must first applied for before it go for other provinces. "
When Mr. Huang show the sales system made by Liu, many sales managers are opposed . In this case , Mr. Huang made a more surprising decision . He said to all of the sales managers : " From now on, the final sale decision of construction machinery is responsible by my lawyer Liu , if there is an disagreement ,do not look for me , I listen to Liu solicitor ."
Liu lawyer is moved for Mr.Huang’s trust , he said: . " Rules determines the fate of an enterprise , the rules I made is conducive to business , as long as you stick, effects will show
A series of rules save endangered Enterprise
For Liu lawyer’s reform , many sales customers called it " Shang Yang Reforms ", though they have conflicts for it, but the boss insisted , they can only obey.
After a year’s operation, great changes made in Mr. Huang's business . Mr Huang said : " Now,  my business ‘s annual revenues is nearly 40 million, while only 2.6 million of bad debt , so the effect is amazing ."
This should not give credits to me, but thanks to Mr. Huang's legal consciousness , his decentralization and insistence to new sales system are conditions for enterprises to develop in an healthy way. An company ’s development , can not rely on human relationships, by human sympathy, but rely on the rules , only sound rules system developed, then big development is possible "