1. Write to the Sheriff of the County in which the business is located and ask if there are any unsatisfied Writs of Execution (i.e.- judgments) against the business. In Dade County, write to Sheriff of Miami-Dade County, Att: Civil Execution Department, 140 W. Flagler Street - 8th Floor, Miami, FL 33130. There is no charge for this service in Miami-Dade County.
   
2. Check with the Florida Department of State - Bureau of the Uniform Commercial Code, to find out if the assets of the business are pledged as security to another creditor. The records are available via the Internet at www.dos.state.fl.us.
   
3. Try to find out what assets the business owns that are not pledged as security. Many valid corporations have nothing but a premises lease with rented furniture and equipment. If you sue and get a judgment, how will you collect? Such a corporation may be "collection-proof". Whenever possible, get a personal guarantee.
   
4. Don't place much reliance on credit references. Every business person can find someone who will say they are a good credit risk.
   
5. Call the Chamber of Commerce or Better Business Bureau in your customer's area and ask if the business is a member and if they are aware of any complaints against them.
   

1. a provision that if you retain an attorney to collect your bills, your customer agrees to pay all your costs of collection, including reasonable attorney fees. The importance of this cannot be overstated.
   
2. if your customer is not located in your County, they agree that in the event of any litigation between you, venue and jurisdiction therefore shall be in the appropriate Court in the County where you are located. Without this, you might find yourself filing or defending yourself in another County or State.
   
3. a place for your customer to write the estimated fair market value of its unsecured assets. If the assets have minimal value, and the customer greatly exaggerates, you might have a case against him for fraud and be able to obtain a personal judgment. If the truth is told, then you know what limit to place on their credit.
   
4. a provision for a personal guarantee, and be sure that the document is executed properly so that the guarantee is enforceable. I recommend that the person should sign the application twice, once using his or her title when signing on behalf of the corporation, and once without a title when signing as a personal guarantor.
   
5. a provision that the customer will be charged interest at a specified rate (not to exceed 18% in Florida), on money past due.
   
6. the name of the customer's bank, the branch used, and account number. Keep a photocopy of the customers first check and subsequent ones if they change banks.
   

1. If an account becomes delinquent more than 90 days, or even 60, consider turning it over to your attorney for collection. Chances are good their financial condition will deteriorate before getting better, if at all, and then they may be unable to pay some, if not all, of your account.
   
2. If the customer wants to pay you in installments, or in a lump sum but at a future date, insist that they immediately send you a letter clearly admitting that they owe the money, specifying the exact amount and date the payment(s) will be made. If they default, they cannot subsequently try to justify or excuse their non-payment by claiming your product or service was not as agreed or promised.
   
3. Always keep copies of Statements, Invoices, demand letters and other correspondence between you and your customer. If you end up in Court, these items are your evidence.

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