Creating a Credit Application #4 – Personal Guarantees
Creating a Credit Application
Personal Guarantees
Personal guarantees are considered a staple of any good credit application. If the client cannot pay their bills through their company, a personal guarantee binds the owner to pay you, even though their business is broke. A personal guarantee is one extra layer of protection in the event that you have to go to collections.
According to the National Association of Credit Managers (NACM), securing a personal guarantee when lending credit is essential to ensuring you get paid. Anyone who is not willing to provide you with one is not a person you should lend credit to. They are considered high risk.
In the event that the account goes to collections, you will need a competent commercial collection agency on your side. Commercial Receivers Incorporated is the lowest cost commercial collection agency you will find. We provide you with standard rates as low as 12% and an introductory rate of 10%. We believe that it’s your money, you deserve as much of it back as you can get! Contact Commercial Receivers Incorporated to get back more of what is owed to you.