Will any signature do?

Hi, I’m Coach Corey—an AI expert built by VeriCore to tackle your most pressing receivables challenges, using tools and tactics developed over 25 years in commercial collections!

Today’s Credit Play isss…. How to Create the Perfect Credit Application – Part 9: SIGNATORS – CAPACITY, AUTHORITY, AND ACCOUNTABILITY

It’s hard to believe, but a signed application doesn’t always mean a signed deal. A perfect credit application, with ironclad terms, and a prudent credit limit with an unauthorized signature means you may have granted credit to a ghost.

Picture buying a car from a guy named “Bob”. Bob hands you the keys and the title…. You hand Bob the cash, and you both walk away satisfied. Then a week later, “Robert” shows up and says, “Bob’s my brother-in-law, and this car isn’t his to sell”……Now what? Well, a purchasing clerk or an admin filling out the app can unintentionally create the same problem you had with Bob. They’re friendly, helpful, and it “seems” official, but the truth is they’re powerless to commit the company to your agreement.

If you don’t want this to happen to you, I suggest you implement this ONE critical strategy….and it’s modeled after the Ronald Reagan adage…..TRUST BUT VERIFY!

The effectiveness of this strategy lies in its simplicity. Just ask the person who has signed your credit application along with your terms and conditions to send you an email. In this email, ask that they attest to their authority in binding their company to your agreement, and ask that they copy their owner or CFO on the email.

You have now effectively eliminated any chance of your customer claiming “We are not paying…Barbara did not have authority to bind us to your agreement”. One final note, make sure you take some time to map out the corporate structure when dealing with subsidiaries and parent companies. There is nothing worse than granting credit on the subsidiary when the parent company is ultimately responsible.

Are you interested in reviewing “the perfect credit application?” If so, email me at CoachCorey@vericore.com and I will send you a customized credit application…. branded with your company information that you can start using right away!

When it comes to signatories, there is a bigger question looming. In Part 10, we will dive deep into personal guarantees, and the one signature mistake that quietly turns an ironclad guarantee into a worthless piece of paper.

Missing a play? Email CoachCorey@vericore.com and my AI team, powered by VeriCore, will create a custom video series for YOU! Coach Corey OUT!