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.