{"id":7378,"date":"2022-02-08T15:46:17","date_gmt":"2022-02-08T15:46:17","guid":{"rendered":"https:\/\/picb-us.com\/?p=7378"},"modified":"2023-08-14T20:24:34","modified_gmt":"2023-08-14T20:24:34","slug":"picbs-credit-tip-whos-your-valentine","status":"publish","type":"post","link":"https:\/\/picb-us.com\/picbs-credit-tip-whos-your-valentine\/","title":{"rendered":"PICB\u2019s Credit Tip \u2013 Who\u2019s Your Valentine"},"content":{"rendered":"\n

PICB\u2019s Credit Tip \u2013 Who\u2019s Your Valentine<\/strong><\/strong><\/h2>\n\n\n\n

By Andrea Schlack, President PICB<\/p>\n\n\n\n

Have you been victimized by a customer who suddenly sold its company while still owing you money? Were you left bereft, a profitless victim without recourse?<\/p>\n\n\n\n

PICB\u2019s Valentines Wish to You<\/p>\n\n\n

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William Shakespeare wrote “A rose by any other name would smell as sweet\u201d which simply means that the names of things do not affect what they really are, therefore can using his observation better define certain credit terms to keep the money where it belongs?<\/p>\n\n\n\n

Specifically, a Printer who defines payment expectations as a \u201cTrust\u201d and states specifically its rights and remedies over a Customer that is a Third-Party Trade reselling goods\/services for price + profits may be able to hold such a non-paying Customer and its\u2019 principals personally liable for the breach of that Trust without obtaining an actual personal guarantee.<\/p>\n\n\n\n

Money deposited to a bank account whereby others have a fiduciary right to a portion of the proceeds is a \u2018Trust\u2019 \u2013 and a \u201cConstructive Trust\u201d is an equitable remedy imposed by a court to benefit a party that has been wrongfully deprived of its right of payment. In simple non-legal terms, invoices paid and deposited to your Customer\u2019s bank account is a \u2018trust\u2019 and if the portion owed You is not paid the Courts may deem the non-payment as a violation of the Constructive Trust ordering the Customer and its principals to pay you.<\/p>\n\n\n\n

When used for its intended purpose many may claim it to be improper, unenforceable or illegal. But, just like Shakespeare\u2019s rose\u2014<\/p>\n\n\n

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Suggested Constructive Trust language you may want to add to your credit agreement:<\/strong><\/p>\n\n\n\n

\u2018The proceeds<\/strong><\/a> of any sale made by [Customer] using [Creditor] product shall be deemed to be held in constructive trust for [Creditor] in such amount as would have been due to the [Creditor] to satisfy the sale price of the product used in the sale. To facilitate the future and ongoing sales of product from [Creditor] to [Customer], the principal(s) of [Customer] acknowledge this to be a personal debt of the principal(s) as well.\u201d This Constructive Trust shall constitute an immediate lien upon the funds received by Customer from said end user for the product using Creditor\u2019s goods and services. Said lien is in favor of Creditor and against Customer.<\/p>\n\n\n\n

May it never be needed, but \u2026..
may you benefit from it should it become necessary<\/p>\n\n\n\n

Happy Valentine\u2019s Day From the entire staff of PICB!
Andrea Schlack, President
847\/265-0400           
PICB-US.com<\/p>\n\n\n

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Need help stopping The Turkey Trots visit us on the web at<\/strong>
WWW.PICB-US.COM\u00a0<\/strong>
Printing Industry Credit Bureau
50 years of successful debt recovery and collection services<\/p>\n\r\n","protected":false},"excerpt":{"rendered":"

PICB\u2019s Credit Tip \u2013 Who\u2019s Your Valentine By Andrea Schlack, President PICB Have you been victimized by a customer who suddenly sold its company while still owing you money? Were you left bereft, a profitless victim without recourse? PICB\u2019s Valentines Wish to You William Shakespeare wrote “A rose by any other name would smell as…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/picb-us.com\/wp-json\/wp\/v2\/posts\/7378"}],"collection":[{"href":"https:\/\/picb-us.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/picb-us.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/picb-us.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/picb-us.com\/wp-json\/wp\/v2\/comments?post=7378"}],"version-history":[{"count":4,"href":"https:\/\/picb-us.com\/wp-json\/wp\/v2\/posts\/7378\/revisions"}],"predecessor-version":[{"id":9663,"href":"https:\/\/picb-us.com\/wp-json\/wp\/v2\/posts\/7378\/revisions\/9663"}],"wp:attachment":[{"href":"https:\/\/picb-us.com\/wp-json\/wp\/v2\/media?parent=7378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/picb-us.com\/wp-json\/wp\/v2\/categories?post=7378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/picb-us.com\/wp-json\/wp\/v2\/tags?post=7378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}