What is the name of your state? New York
Our corporation requires new customers (businesses, not individuals) to sign a credit application that includes a personal guarantee. The credit app also includes provisions that the customer agrees to pay a fee of 25% of the unpaid principal if the account is put out for collection and that the agreement shall be governed by NY State law and jurisdiction.
For the first time, we have a customer who is not paying a legitimate invoice. We have sent them a final notice with a deadline to pay or we will move on the personal guarantee. If they do not pay, what is the proper procedure to act on the personal guarantee?
Our corporation requires new customers (businesses, not individuals) to sign a credit application that includes a personal guarantee. The credit app also includes provisions that the customer agrees to pay a fee of 25% of the unpaid principal if the account is put out for collection and that the agreement shall be governed by NY State law and jurisdiction.
For the first time, we have a customer who is not paying a legitimate invoice. We have sent them a final notice with a deadline to pay or we will move on the personal guarantee. If they do not pay, what is the proper procedure to act on the personal guarantee?