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In this segment of the Five-Minute Legal Master Series, board-certified creditors' rights attorney Nicholas D. Kralik discusses the importance of understanding credit agreements. He emphasizes that while businesses may feel excitement in acquiring new customers, they must also consider the potential risks of extending credit. Kralik points out that when a creditor provides credit, they are effectively lending their company's money, which carries the risk of non-payment. Therefore, he advises that from the very start of the business relationship, creditors should be proactive in anticipating their rights and remedies in case the customer defaults. Preparing for collections from the beginning is essential, even though it may not be a pleasant topic to confront.