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Collection Protection

Your ability to collect from past-due clients may depend on the language in your documents.

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Have an attorney--preferably one who specializes increditors' rights--review all your documents, including creditapplications, sales contracts, invoices and statements, to ensurethey conform to your state's regulations.

For instance, invoices should state when the payment is due. Ifyou offer terms, you must clearly state the interest rate andconditions under which interest accrues. In some states, customersmust agree to this in writing; find out if this applies to you.Also, stipulate that if there is a problem, the debtor isresponsible for paying any attorney and collection fees.

Do yourself a favor: Protect yourself now, and collections willbe much easier later.

Excerpted from Get Smart: 365 Tips To Boost YourEntrepreneurial IQ

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