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In this episode of the Five-Minute Legal Master Series, board-certified creditors' rights attorney Nicholas D. Kralik discusses the importance of credit agreements. He emphasizes that in the excitement of acquiring new customers, creditors often overlook the risk of those customers potentially becoming debtors. Kralik advises that when a creditor extends credit, they should treat it as lending their company’s money, highlighting the necessity of being proactive at the beginning of the business relationship. He stresses the importance of anticipating the rights and remedies needed if the customer fails to comply, urging creditors to prepare for collection from day one, despite the discomfort of considering such scenarios.