Last-Minute Curveballs: Why Deals Aren't Done Until the Money Clears
Last week I spoke with a business owner who was facing a terrible dilemma:
* On Monday she got a new customer who signed the contract and immediately paid the invoice.
* On Tuesday, she used that money to purchase materials she would need for the project.
* On Friday, the customer disputed the credit card charge, and the charge was reversed, leaving her hanging with her supplier.
She asked the supplier for a refund, but the supplier refused. Now the only thing she could do is sue the customer to collect.
Her contract was fine, and yet she was still facing a lawsuit.
Contracts are great, but the deal is not done when the contract is signed, or when the payment is received… but when the money clears.