Anytime you work for a company or ship a product before getting paid, you are extending credit to that company. That’s why, just like any lender, before you begin working with a new client or company you should review the 5 Cs of Credit. Character For individuals applying for a loan, “character” generally refers to … Read more
The easiest time to get a personal guaranty is when a business is first asking for credit. It is very easy to include this provision on a credit application as described in our free eBook, The Credit Application Handbook. Many business owners will sign a personal guaranty just because it is on the form. Alternatively, … Read more
At our commercial collection agency we always prefer having a personal guaranty. Years ago, a new client started sending us claims along with their very simple, one page credit application. At the bottom of the page, immediately above the signature block, it reads exactly as follows: NOTWITHSTANDING THIS ACCOUNT IS ESTABLISHED IN THE NAME OF … Read more
