Having a clear sense of your customer’s financials will help you determine if you should sell on terms.
Since you are in essence acting as a lender, you must consider several factors when deciding whether to extend credit. Frank, Frank, Goldstein & Nager, P.C., your New York collection attorneys, believe that performing due diligence on a company’s financials is vital to insure you will be able to collect your receivables.
The article posted in ABL Advisor, “Is Your Borrower’s EBITDA Accurate?” written by Scot Sandel offers a detailed discussion of the importance of understanding the financials of a company to which you are lending. Additionally, he discusses how you can analyze the company’s financials.
Need help determining whether your customer is credit worthy? Call this New York collection attorney at (212) 686-0100 or email Jocelyn directly at JNager@ffgnesqs.com.