Legal Question in Credit and Debt Law in New York
If a client pays me and says to apply it towards a current invoice when he has several overdue invoices, which invoice is it best to apply it towards?
1 Answer from Attorneys
Generally speaking, it is better to apply funds towards the oldest outstanding invoice to preserve any statute of limitation that may be expiring. Consider informing the client that this is your business policy to avoid any misunderstandings.
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