The time a client's check bounced right before rent was due

I was sitting in my apartment in Austin, trying to pay bills online, when my bank app showed a $1,200 payment had been reversed. My stomach dropped, because rent was due in two days and that money was from a big project I'd just finished. The client was a small startup and they'd mailed the check, which I'd deposited a week before. I called them right away, trying to sound calm, and the founder was super sorry, saying their funding round got delayed. I had about $400 in my account otherwise. I ended up calling my landlord, explaining the situation, and he gave me a three-day grace period, thank god. Then I spent the whole next day sending out invoices for smaller jobs I'd been putting off and asking a couple of regulars if they could pay early. It worked, but I learned to never count on a single check clearing until it's really in the bank. Has anyone else had to scramble like that because of a bounced payment?

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3 Comments

mason.paige6mo ago

It's wild how much of our stability depends on other people's money moving on time, isn't it?

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gonzalez.anna6mo ago

Yeah, the "stability depends on other people's money" part is so real. I read about how a single big company paying its bills late can cause a whole chain of small businesses to miss payroll. Like a construction subcontractor doesn't get paid, so they can't buy materials, and the local supplier has to lay people off. It's a house of cards.

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james6724mo ago

But how do small businesses even prepare for that kind of domino effect?

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