Are you missing valuable credit information on those you deal with?
Find out what information is available. Just complete the form below and we will contact you.
Refer Potential Members
Why should I submit potential members to NACM?
Are you tired of dealing with
credit reference requests?
Direct the requesting company info to NACM. As a member they will have access to our reports. You will get fewer credit reference requests and their information will be added to your NACM reports.
Connect With Us
| Oct 01 2013 ICEL Meeting Recap: Credit Law 101 |
|
| The
room was packed to see the world famous Dawn Meehan and hear about her
experiences while competing on the television reality series Survivor.
Unfortunately, she was unable to attend due to a family emergency.
Lucky for all those in attendance we were saved by Scott Lee, JD, CCE, Vice President, NACM Business Credit Services.
Scott showered us with his legal knowledge and how we need to ensure we have all our legal bases covered when dealing with our customers. He taught us Credit Law 101. We need to know what type of business we are selling to. Make sure we understand the differences between all the different business types; i.e. sole proprietorship, LLC, S-Corp, etc.
Credit managers need to understand how they are going to receive payment for goods/services. Is there a contract in place with a personal guarantee? Are the principles who they say they are? Ensure that the person signing the agreement has authorization to do so.
The credit application is one of the most, if not the most, important tool we can use to collect. If you are going to sell to somebody on credit, make sure there is a signed credit application in place and make sure it's complete! We need to understand that not everything is foolproof, that is why our companies have us employed. Another way we can secure our position with a customer is with a security agreement. The agreement must be written in order to be a security agreement. Some questions to ask when establishing a security agreement are:
Here is a nice little illustration Scott provided to help understand how security agreements work.
Security Agreement
Secured Party Debtor
Collateral
Unfortunately we ran out of time because I'm sure we could have been there all day to discuss credit law and we would have all been intrigued to hear more. Thanks to Scott for stepping in on such short notice and providing an excellent meeting to all those who attended.
|
