We are often asked by credit managers in California if there are any additional credit approval criteria to consider when a proposed customer and credit applicant is an out-of-state (“foreign”) corporation. While each case is fact-specific, there are some general factors for credit managers to consider that uniquely apply to extending open account credit terms to foreign corporations doing business in California.

Working with Foreign Corporations in California

The first step is to confirm that the corporation has registered with the California Secretary of State as a foreign corporation doing business in California. Continue reading →