When I first started out working as a credit manager, I worked at a Shoe Tree Company. We had a local shoe store that kept telling me that they would send a check, but never kept their promise. I involved the salesman who made that sale and he went to the store with a box. He went into the display window and started putting the shoe trees that were on display in the box. Of course the store owner ran up to him in a panic, especially since there were customers in the store, and people on the street were stopping to watch. My salesman explained to him that the items had not been paid for, and he kept saying he was going to pay but it had been to long. He told him it was fine if he didn't want to pay, but he was taking the product back.
The owner gave him a check immediately and he was cash in advance after that.
How do you know if it is legal for you to repossess your product? Read on.....
If your customer signed a "note" or a legally binding agreement with you or your company, you may be able to repo what is yours.
The "note" should explain the amount of money that was to be paid, when and how it was to be paid and may contain a security agreement.
"A Security Agreement makes it legal for you to repo your product if the customer does not make payment."
Most security agreements specify that if you are not paid, you have the option of repossesing yoru products. If yours doesn't you can easily include that in your note or agreement to make this option available to you.
You can repo your product if your customer signed a security agreement that provides for reposession and if they are in default or are not paying you.
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