The relationship is profitable and your customer wants to continue to buy from you. You would like to continue the relationship but the account is paying a bit too slow for your liking. How can you continue to do business with the slow paying customer and protect your business if they stop paying?
A Confession of Judgment is your best protection when dealing with a slow paying customer who wants to continue to buy from you.
How it works:
- both parties agree as to how the balances will be paid
- the agreement is reduced to a written document executed by the customer
- the customer, who is ‘confessing their sins’ may even agree to pay your attorney’s fees in the event payment is not made as agreed
- if payment is not made, the creditor may, within three years, file the Confession of Judgment with the Court and execute on the Judgment without having to wait in line
Using the Confession of Judgment is a non-threatening way to continue to do business with your customer, while protecting your business and bottom line. In the event the customer fails to pay, you can skip the lawsuit and go straight to collecting the money owed you.