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I bought a business 2.5 years ago. One of the customers is constantly behind on payments and maintains a high balance. They were one of the original customers when our company was established in 1979. They account for about 25% of our annual sales. Our terms are net 45, but I've shipped product 6 months ago that's only been partially paid for. I get small payments periodically, and I've got orders from them for more. It's frustrating, but I'm sufficiently capitalized to manage their account balance. And I can simply slow production when their pace of payments slow.

With that said, I'm concerned about the end game. At some point, the owner will die or retire (probably die). He's about 35 years older than I am, and there's very little chance of his business getting passed on. I'm wondering if there's some insurance I can get against that account balance? Or is there some legal document I could have him sign that would guarantee me getting paid off? (I'm fairly certain he has considerable personal wealth, no matter the state of his business). Just wondering what the options are on that?
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