In a digital world, businesses have become increasingly reliant on electronically transmitted documents, including credit applications.
Trade credit businesses rely heavily upon signatures which appear on terms and conditions of trade and, perhaps more importantly, personal guarantees. This is risky because the signature may have been forged and/or placed on the document by an unauthorised person. Conversely, it is open for an unscrupulous person to later falsely claim that the signature was not applied by them.
If you are a trade creditor who relies on Personal Guarantees, then the following information may be vital to effectively protect your interests.
- How are personal guarantors commonly seeking to deny liability?
- How do you overcome a “denial of signature” claim?
- What practical steps can be incorporated into credit management processes to limit risk?
The risks of fraud and dishonesty can largely be overcome with carefully considered practices and procedures.