When your customer has built up a sizeable account receivable, consider asking them to sign a promissory note to secure payment. When customer is able to obtain materials from your company on a credit basis, there are times when they may incur a rather sizable debt....
A credit agreement is a contract. As such, you should retain the entire, original signed contract in your files, not just the signature page. I have noticed that some companies retain only the signature page of a credit agreement in their files. Often what happens is...
When you drop materials of at your customer’s warehouse or job site, take extra care to document the transaction and retain proofs of delivery. In a rush to get materials to a customer or job site, the drivers and warehouse workers may cut corners when it comes time...
It is a best practice to retain original documents signed by your customer. This would include the original credit agreement, signed purchase orders, signed delivery tickets, etc. Original documents are necessary tools for the courtroom lawyer if you need to sue to...
When your customer asks for a payment extension, make sure to first obtain an agreement in writing regarding the exact balance that they agree is due. As a commercial collection attorney, I see all manner of defenses that a business will give in court for not paying a...
By Adam Whiteman, Commercial Collection Attorney If you are entering in to a contract or a credit agreement by which you will be providing goods or services to another business, it is critical that you correctly identify your customer’s name on the contract and/or...
The credit agreement is used differently and means different things to those involved in a commercial transaction. To the vendor, the credit agreement is a way to gather information about a prospective customer. With this information, the vendor has a means of...
Changes to a contract might not be enforceable against a guarantor who has not agreed to those changes in writing. There are a number of ways this scenario could play out. For example, say your company has agreed to provide building materials to your client for a 1...
People change, and so do companies. Companies get reorganized, shut down, merged, and dissolved. All manner of things can happen to a company that can change its legal status. If a corporation is no longer in existence, then the contracts it entered into might become...
If you are entering in to a contract or a credit agreement by which you will be providing goods or services to another business, it is critical that you correctly identify your customer’s name on the contract and/or credit agreement. Don’t just accept the customer’s...
