Creditors’ Rights 20
A: One good way is to take a look at the existing credit application that your company requires
new customers to fill out. If your existing credit application asks for only one or two credit references, you may want to increase it to four or five. If the company is a startup or its creditworthiness is marginal, investigate the creditworthiness of the principals or affiliated companies, with an eye toward obtaining personal and/or cross corporate guaranties. The bottom line is to establish a culture in your company that focuses on getting paid rather than just closing the sale. It’s much better to weed out credit risks early in the process, when the relationship is new, than to have trouble later on collecting what you’re owed. To learn more, register for our upcoming one-hour teleseminar, “Top Ten Creditors’ Rights Secrets Revealed! A Teleseminar That Will Change the Way You Think about Getting Paid,” to be held Tuesday, Sept.
12, 2006, at 2 p.m. eastern.