I have read the terms and conditions stated below and agree to all of those terms and conditions. Bills are sent on the first day of each month. All bills become payable in full on the 11th day of the month and, if not paid by the end of the month, are considered past due. No additional credit will be extended to past due accounts unless satisfactory arrangements are made with our credit department. If the credit customer is a corporation, then those signing this application, whether signing as an officer or not, personally guarantee payment for all items purchased on credit by the corporation.
Personal guarantees can be a problem.
See the discussion in Section 3, below. When the customer is another business, it's wise to get information about who you're really dealing withespecially if the business wants a substantial amount of credit. The answer determines who's liable for the debt. With a general partnership, you can go after the assets of the individual partners, if necessary, so it's a good idea to have the names of all the partners listed on the credit application. With a corporation, you usually are limited to collecting from the business assets.