"Do I need to have one?"
"Should I sign one?"
We get asked these questions frequently at Active Debt Recovery, so here we are to explain a little more about the topic and hopefully give you some insight from the industry leaders in Debt Recovery.
Signing personally on behalf of a business can result in your personal finances, assets and credit rating being put at risk. Most companies giving a credit account in this day and age will require you complete a personal guarantee as a Director and be subject to credit checks and or references for other accounts you currently hold, for this reason we recommend doing your research and ensuring you can and will guarantee payment under any circumstance before signing.
Having a Directors or personal guarantee as part of your credit control process is absolutely crucial and should be a priority before you extend any credit. A commercial credit check is available through Active Debt Recovery and we highly recommend this becomes part of your daily process when approving new credit accounts. A credit account can be as simple as starting a job and investing your time, effort, staff and money on supplies before receiving any funds, this is still giving "credit" so to speak.
Active Debt Recovery can still pursue a debtor in the event that their business closes, enters bankruptcy, changes owners and many other scenarios you can not foresee. For this reason we offer Credit Applications including a Directors/Personal Guarantee including all design work specific to your businss for only $350+GST with a 7 day turn-around. If you would like to know more, please contact our team at firstname.lastname@example.org or 1300853230.
Active Debt Recovery Australia.