Business Agreements

It never ceases to amaze me how businesses big and small do not carry out appropriate searches on customers before entering into accounts with them. You’d be surprised how often business clients come to my office seeking to recover debts from delinquent account holders without even basic information regarding the legal status of the account holder to begin with. It also seems to be usual for businesses to enter into accounts with limited companies without obtaining a personal guarantee from the directors of the company. In short, if you are considering supplying any business, it makes sense to carry out searches on the business, including credit searches, one should also have well drafted terms and conditions signed by the proposed account holder, and always obtain personal guarantees when dealing with limited liability companies in any business agreements.