Your customer asks for goods or services, with payment to be made later. They may already owe you money. Sensing your hesitation, the customer attempts to reassure you by promising payment; “don’t worry” they say “I guaranty you’ll get paid.”
Is the customer’s promise to get you paid a true guaranty of payment?
A promise is a promise, not a guaranty, unless it’s in writing. If the individual wants to guaranty you’ll get paid, they will put it in writing. If it’s written and meets other criteria, the guaranty is enforceable.
A guaranty is one of many valuable tools in your tool box to get paid. It may provide added protection for you when the initial debtor does not or cannot pay or perform.
Make sure your guaranty meets all necessary criteria to be enforceable in New York State. For more information on guarantees or to enforce a guaranty or claim, email jnager@ffgnesqs.com or call 212-686-0100.
