Non-Disclosure Statement

Before releasing financial statements The balance shee A financial statement listing the assets, liabilities and owner’s equity of a business entity as of a specific date. t, income statement, statement of changes in financial position, statement of changes in owners' equity accounts, cash flow statement and notes. to a vendor The seller of property or goods. , customers often express concern about whether this sensitive information will be kept confidential. A non-disclosure statement sent by the vendor confirms that the information will be maintained in confidence in the credit The privilege of buying goods, services or borrowing money in return for a promise of future payment. department's files.

Creditors should have and use their own non-disclosure agreement. If they are asked to sign a non-disclosure agreement prepared by the customer, the credit manager should carefully review the contract for extraneous and unusual terms and conditions. Whether the buyer or seller writes the non-disclosure agreement, before signing it the credit manager must be certain that the seller and will comply with all of the conditions and requirements contained in the contract.

If the creditor A person, business or governmental agency with a claim against a debtor or debtor's business. claim A right to payment or other equitable remedy in the event of a breach of contract. against a debtor or business entity that owes money. or debtor's business. clai A right to payment or other equitable remedy Relates to the judicial means or court procedures by which legal and equitable rights are enforced. in the event of a breach of contract. m against a debto or business entity that owes money A medium of exchange; coined or stamped currency. . r or debtor 's business. company then misuses the customer's financial statements or discloses the information to a third party, they can be held liable for their breach of contract. The creditor can be sued for any damages that the customer can demonstrate occurred as a result the creditor's decision to release the information disclosed in confidence.