Protect yourself from day one with the use of a good credit application. The credit application should include all the information you may need if the account goes to collections; I have written such a credit application that is available by request. If you are writing your own credit application make sure it includes the company’s full name physical address, mailing address, e-mail address, and what type of company i.e.: sole proprietor, corporation, LLC etcetera.
The name of the principals of the corporation i.e.: President and Controller, also the name of the person responsible for accounts payable and their contact number. I always recommend the principal of the company sign a personal guarantee (PG).
Why you ask?
The answer is simple if the owner of the corporation is 100% positive of his company’s ability to pay he will have no problem with a Personal Guarantee If he or she refuses to sign you have to ask yourself a question, if they are not sure enough to guarantee the company pays how can YOU be so sure you will get paid. Always make sure there is language that will allow you to get their banking information.
