Sound credit processes are there to be followed … Always check your credit account applications are completed in full prior to approving credit

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Friday, 2 July, 2010

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To strengthen your recovery position when providing credit to a limited liability company, personal guarantees should always be obtained from Directors.

A trader recently provided credit to a company even though the Director of the company had deleted the section in the Credit Account Application relating to personal guarantees. The company has not met its obligations and the trader has endeavoured to recover the money owing without success.

We recommend to our clients they should always obtain a personal guarantee from the Director/s of a company, or a suitable third party, prior to approving the Credit Account Application form.

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