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In this five-minute legal master series, expert attorney Nicholas D. Kralik discusses the importance of understanding credit agreements. He emphasizes that creditors, especially in sales, often overlook the potential of new customers becoming debtors. When extending credit, they are effectively lending their company’s money, which comes with the risk of non-payment. Kralik advises that the beginning of a business relationship is the ideal time to proactively consider the rights and remedies available to creditors. He stresses the importance of planning for potential collection issues from the outset, even though it may not be a pleasant topic to contemplate.
