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In this segment of the Five-Minute Legal Master Series, board-certified creditor rights attorney Nicholas D. Kralik discusses the importance of credit agreements in business relationships. He emphasizes that while the excitement of acquiring a new customer can overshadow concerns about potential default, creditors must recognize the inherent risks involved when extending credit. Kralik advises that it's crucial for creditors to proactively establish their rights and remedies at the outset of the relationship. This preparation is essential to ensure effective collection efforts if the customer later becomes non-compliant. The key takeaway is to plan for potential collection issues from day one.