Journey To $100 Million

When completing work for a client, do you run a credit check beforehand? Do you obtain a promissory note? Do you have anything besides their acknowledgment of a proposal or contract to ensure you get paid? In episode 218 of Journey to $100 Million, Erik explains how you are extending credit to a company or individual when completing work for them. When you send a client the bill for your work, you are extending credit to that client. This is due to the fact that you are essentially giving them a loan for the funds needed in order to complete this work. Often times this can pose a huge risk as you may be unaware of the client’s credit situation. Think of it like this: if you put in a week of work for a client and you have to wait a month for that payment, you just wasted a ton of time that you could’ve put into another client’s contract. Ultimately, you want to get paid for your services in a timely manner and make the most of your time, especially because companies have to pay their employees as well. It is