There's a big misconception in the marketplace.
Just because a tenant has a national footprint, is owned by a large corporation, has a few million followers on Instagram, does not mean the tenant is providing a credit signature when they're signing your lease.

According to Wikipedia: "A "credit tenant lease" is a lease from a landlord to a tenant that carries sufficient guarantees that lenders will perceive the rent cash flows from the lease are as reliable as a corporate bond."

Does the tenant offer its guarantee for the full term of the lease?
Does that entity truly maintain all assets and cash flow?
What about a personal guarantee from a principal of the tenant?

Learn to ask questions whenever reviewing a company's or individual's financials!

If you think you have a credit signature because you reviewed strong financials, give us a call, and let's make sure you're really protected.

Share a story with us in the comments below, where you learned a good lesson about this.