Creditors' Rights 43
Q: Is there a way to protect myself from a customer filing bankruptcy and sticking me for a balance?
A: Absolutely. Sell only for cash in advance, like a fast food restaurant! If your industry and competition require extending credit terms, then look to credit enhancements like liens, letters of credit, etc. There are a number of ways to “enhance” the credit you are extending, but you have to do it carefully and thoughtfully. One cannot do this on the fly and be successful. There is some planning and policy that goes into it. It is not complicated, but you have to be prepared.
*Learn more about credit policies and the Payment Gap with Bob Bernstein’s new book, Get P.A.I.D.TM A Guide to Getting Paid Faster (and What to Do if You Don’t!) at www.getpaidsystem.com
