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How it protects a supplier
A retention of title (RoT) clause in your terms says ownership of the goods does not pass until you have been paid in full. If the customer fails, you may recover unsold, identifiable goods ahead of unsecured creditors.
The limits
RoT is weaker once goods are mixed, altered or sold on, and it must be properly incorporated into the contract. It protects goods, not cash owed. Pair it with credit control and a bad-debt strategy.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Can I take my goods back if a customer goes bust?
With a valid retention of title clause, you can reclaim unsold, identifiable goods you have not been paid for, ahead of unsecured creditors.
When does retention of title fail?
When goods are mixed, transformed or already sold, or where the clause was not properly built into the contract. It also does not recover cash owed.
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