PICB's Monthly Digest of Sound Credit And Collections Practices

 
Printing Industry Credit Bureau www.picb-us.com (847) 265-0400
Volume 2014, Issue 2
Dear Member,

Credit Tips helps you think before you leap by showing the pitfalls others have encountered in the course of conducting business.  Being naive of predator ways will make you their victim, so it's best to learn from the mistakes of others while honing sound financial practices we highlight each month.  Hope your February has been prosperous. Thus far, just 51 days into the new year, PICB has already recovered over $200,000 for our printer members. 

With much respect, 

Andrea

Andrea Schlack
President

Original Artwork by Marc. Art, Inc. mob5948@aol.com
Lawyer's Pen

February's article comes from the pen of attorney William A. Rinehart of Rinehart, Scaffidi & Mathews in Milwaukee.  


IMPORTANCE OF THE CREDIT AGREEMENT

 

   The credit agreement or credit application is a necessary document that begins the relationship between a seller and buyer of goods and/or services.  Can you sell to a customer without obtaining a credit agreement?  Yes.  Should you do it?  No!  How you begin your relationship can determine its success or failure.  In addition, information you obtain initially may stop or modify a potentially bad relationship before it starts.

   What should be included in the credit agreement and why?  You need to obtain as much information as possible about your customer.  The legal name, whether it is a corporation, partnership, LLC, or sole proprietorship, plus the names, addresses, and Social Security numbers of all officers, partners and owners is critical.  Banking information, credit references and affiliated companies provide further background to check and verify.  One or more personal or affiliated company guaranties give additional protection.  Provisions setting interest rates for late payment, payment of collection costs and attorney fees if there is a payment default, and a venue provision allowing the seller to sue where the seller is located, if it chooses to do so, are protections in case legal action is necessary.

     The information obtained in the credit agreement is used to make the initial decision to grant credit and, if so, how much.  It can be used by third parties hired by the seller to do a thorough credit check on the buyer to uncover potential problems before they happen.  The credit agreement subsequently is important to provide the maximum protection if there is a later default on payment and collection action, including legal action, is necessary.  The ability to obtain information and a written signed agreement diminish after a problem arises, which is the time that information is most necessary.  The credit agreement should be signed by the customer, by an authorized person such as an officer, partner or owner, and the signature should be witnessed and/or notarized to increase enforcement upon default.

      Obtaining a credit application is like going on a first date.  It is a time to learn about the other party and decide if there is the potential of a relationship.  The more you learn at the time when the parties should be truthful, the more you can verify and, therefore, protect yourself from long-term harm.

       Remember, obtaining a full, complete and signed credit application is only important when a problem arises.  Unfortunately, since you don't have a crystal ball, it means the credit application is important every time you start a new relationship with a customer.

      The old adage, "hope for the best, but plan for the worst" applies to the credit application.

Help Is Here

                 


Help In All Phases of Your Client Relationship
Two Companies, One Passion: Protecting Your Profits

Collection Services 
PICB is the Graphic Art Industry's dedicated credit and collection agency. We've gained the trust of printers over 35 years of helping them get paid by slow and non-paying customers. Our rates are below industry averages, yet our results are superior.
 
From PICB's website, click Resources & Archives at the top of the page to find links to government websites with real-time, free information you may find helpful in determining a customer's stability or viability. These sites provide you the ability to verify business registrations, civil court records, lien information, and much more.

When you don't have time to research your customer's background, PICB's sister company, √it Co. will do it for you. √it Co's Credit Risk Assessments compile reports the old-fashioned way with hands-on, extensive research using 21st century tools.  Know your customer before you do the work. 

PICB's free web-based tool, located at www.picb-us.com near the center of the navigation bar, provides free access to our database of customers who haven't paid printers.  Look up your potential customer and see if PICB already knows them.  It may save you some heartache. 

Questions?  Call us any time at (847) 265-0400
For Collections, visit PICB: www.picb-us.com
For Risk Assessment, visit √it Co: www.checkitco.com
 
Thanks for reading this edition!  Feel free to forward this to others.

 

Printing Industry Credit Bureau 
(847) 265-0400
Quick Links  
In This Issue
Credit Capers
Lawyer's Pen
Help Is Here
Your Staff at 
Printing Industry
 Credit Bureau

Andrea Schlack 
President

 Dennis Adams

Vice President
Collections Manager

 

Vin Ayden, 

Senior Risk Manager   Email Vin

 

Dan Comer

Office Administrator

  Email Dan

 

 

 

KreditKarma

Don't let them  bite twice!

 

Uncollected Judgments for February 2014. 

 Click here

to view list.

 

 

ASSOCIATED AIR PRODUCTS

FL

 

BERG PRINTING ENTERPRISES LLC DBA MASTERPRINT

WI

 

BLUE INK

IL

 

CHRISTOPHER NICHOLAS CAMPOS D/B/A CAMPOS SCHOOL PORTRAITS

AZ

 

CMY&K ADVERTISING

 NY

 

DALE JASLOVE IND D/B/A HEALTHCARE CONSTRUCTION

 MI

 

DIRECT MEDIA MARKETING INC.  

NE

 

EL SOL NEWSPAPER

IL

 

EMERY LITHO OF NASSAU LLC

NY

 

FRANK FINOCCHIARO INDIVIDUALLY & T/A LBT SYSTEMS & LBT SYSTEMS INC.

 NJ

 

FIRST FRUITS BEVERAGE COMPANY 

VA

 

PHILIP BASILE D/B/A MINK INC

NJ 

 

REACH MARKETING SOLUTIONS LLC

GA

 

RICK VETKOS DBA
BELTONE OREGON

OR



RODD MURPHY DBA
RODD MURPHY & ASSOCIATES

NY



RON CARTER DBA
SOUTH STREET JOURNAL
IL

RUMORS ON GRAND INC. A DISSOLVED CORP & KATHLEEN M VOGT AKA KATHLEEN TEWS


IL

SANDESH PUBLICATIONS, INC.
IL

SEARCH 1 AMERICA F/K/A LUX PREMI
ER LUX PUBLICATIONS LLC DBA LUX PREMIER

IN