If you are going to extend that type of credit, it is usually a good idea to run a D & B on them before extending the credit. Even that is not complete protection though. If the company in question is experiencing cash flow problems, they probably will not be able to set up an escrow account for future use. We usually keep clients like this on a short leash. If they are going under, it will become increasingly harder to collect a large balance due you because their cash is rapidly diminishing. You should request regular payments on a weekly basis in an amount that you can both live with. If they request longer intervals in between payments, you should request security in the amount of your outstanding debt. It is a very easy matter to file a UCC1 financing statement in connection with a written financing agreement. It may even be a good idea to request security in connection with any payment plan that you conclude. If they are willing to provide security, look for something that will be easy to collect. Their accounts receivable in addition to a list of the clients is usually good. If the funds are in the hands of the clients with a 30 day lag in payment, the client may not have time to spend them before you attach or garnish. If you live in a state that allows prejudgment remedies, you can usually garnish the receivables at the beginning of a collection suit, and it will assure that their is something there at the end of the suit to satisfy the judgment

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