What is the best way to prevent someone from owing me money?
There is no certain way to prevent loss, but you can take certain measures to reduce the risk. Credit reports can give you a good indicator of how much debt the applicant has, how often they pay on time and assets in their name. If you are dealing with a corporation, it is always wise to have a signed contract with a personal guarantee from the agent with whom you are dealing. Additionally, a creditor can require a security for the extension of credit such as a mortgage on real estate or security interest in personal property.
