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Why Should <I>You</I> Take the Fall?

A big client's bankruptcy shouldn't mean life or death for your business. Insure yourself with a UCC filing.

This story appears in the November 2002 issue of Entrepreneur. Subscribe »

In the wake of recent accounting scandals and bankruptcies, entrepreneurs are struggling with a new reality: Even the most solid-looking corporate customers can collapse and crush your cash flow under the weight of bad debt. To protect your company from the bankruptcy flu, an ounce of prevention is worth a pound of cure.

Fortunately, recent changes to the Uniform Commercial Code (UCC) make it easier than ever for you to protect yourself as both a creditor and a debtor. Make savvy use of the UCC laws, and you could provide yourself with growth capital through improved cash flow and deeper credit.

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