Monday, March 13, 2023

When to Insist on a Personal Guaranty

Is your customer considering a personal guaranty of payment to extend their credit?

Business papers scattered on a table | Collection companies Michigan

When considering extending credit based on a guaranty:

  • Confirm that the guarantor is creditworthy. To ensure that the guarantor is financially sound, you can informally rely on business reputation, the impressions of the salesperson on the account, or information someone else within your company who is familiar with the general financial condition of the proposed guarantor. A more sophisticated approach is to get a credit report for the proposed guarantor.
  • If the guarantor is a corporation, require a resolution from the board of directors authorizing the individual to sign the guaranty.
  • If the guarantor is an individual and you can do so while following the constraints of the Equal Credit Opportunity Act, have the guarantor’s spouse sign the guaranty so that you can collect action against joint assets.

Learn what to do once you get the guaranty on our website!

Collect with One of the Best Collection Companies in Michigan

Looking for other ways to collect?

Muller Law Firm will handle your case with the professional attention it deserves! 

Contact one of the best collection companies in Michigan today at (248)645-2440 for an immediate resolution to your collection matters.

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