Risk management is about having a safety net, a fall back position an exit strategy.
Accepting a very large purchase order or contract without these elements is like going on a cruise ship without lifeboats or vests. You simply hope and pray for a good outcome.
There are many safety nets available to help with risk management:
- Third-party guaranty
- Personal guaranties
- Assignment of lien rights
- Perfected Security Interest
- Security thru Deed of Trust
- Corporate guaranties
- Purchase Money Security Interest
- Security thru vehicle ownership
- Perfection of Lien rights
Each type of collateral has its place in the hierarchy of a CFO or credit manager’s tool box. The key is understanding their value and how to execute.
A brief description of each is shown in the FAQ section of this site. Better yet, call or email and we would be glad to discuss the best type of safety net for your purposes.