Wilson Cole's Podcast From The Road

One of the first steps you should take when signing on a new client to do contract or staffing work is to have them fill out a credit application. This may seem like an old school idea, but it is imperative if you want to keep your business safe. Just think about this: if someone approached a bank to get a loan for $50,000 to $100,000 for staffing, the bank would run all sorts of credit checks before giving them a contract. Another important thing to note from this example is that a credit check/application is done as one of the first steps in a business relationship. Legally, it is very important to have company sign a credit application in the beginning of your business together because you can bury safeguards in it to protect your company. Credit applications are vital for assessing the risk of working with another company and you cannot set credit lines without it. You need to know their three main trades and how much is in their bank; this information will be critical when deciding how much you can provi