The Client Nightmare, Part 2

Forty-five days quickly turned into 90.

When a startup has yet to build a diverse clientele, it’s not always easy to justify upholding terms strictly. When we only had one client – this one in Baltimore, some 150-plus miles away – we had to agree to a 90-day extension even after we’d previously agreed on only 45 days. However, we insisted needed the money on Day 90 and no later.

Up until this point, I’d been dealing with the president of this software company and its human resources VP, but given the size of the payment - and the demand we imposed – they directed me to the CEO.

He told me they were looking to raise more capital, but regardless they had the money to pay us at 90 days.

Fast-forward a few weeks.

The deadline to Day 90 – our D-Day – was quickly approaching, and out company needed the money.  Bad.  Honestly, the future of our company hinged on our ability to get paid. We only had two clients, and when you only have two clients, 45 days is a long time to go without payment.  But 90?  Well, that begins feeling like you’re searching for water in the desert and your jug has almost run dry.

Obviously, I was becoming anxious. They were happy with the number of placements we had provided, so I knew this delay wasn’t based on performance. I called to inquire if everything was on track.

But they stop returning my calls.

I felt betrayed.

Upset.  Downright angry.

But most of all, worried.  I was 30 years old, had invested a substantial amount of money into the business, and my family’s savings and well-being were on the line to follow my own dream of being my own boss. Had I made a bad decision that would put my family in bankruptcy? 

Have you?