How to Get Paid on Time when Freelancing
Issue invoices for all work completed., Put all the necessary information on the invoice from the outset., Keep a calendar reminder of the due date., Be persistent., Seek legal advice and recourse.
Step-by-Step Guide
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Step 1: Issue invoices for all work completed.
Invoices serve as a record of services performed.
There is less recourse to following up complaints if you haven't kept a clear paper trail.
Treat invoices in the same manner as a contract; their existence is a formal indicator of work performed and payment promised. -
Step 2: Put all the necessary information on the invoice from the outset.
Sometimes payment will be held up due to missing information.
To avoid this problem, ensure that the following basic elements are clearly outlined as part of the invoice:
Description of the services provided Cost and method of calculating (hourly, for total or stage of project, additional expenses, etc.) Detail any permissible additional expenses clearly, such as long distance phone calls, plane travel, etc.
Date and your address and contact details Tax if relevant An identifier for your record-keeping system Your payment terms , If the invoice has not been paid on time, send a reminder notice or telephone and politely request information about the progress of payment.
Calling is useful because it lets people know you are onto the matter and it also helps you to work out whether it's an oversight, or what the delays might be.
Try to reach a solution together as to payment if needed.
If the client is having temporary cash flow problems, or is out of town, or has misplaced the invoice, these issues can usually be worked through. , The day after payment is overdue, send a reminder letter to the accounts division or payment officer, advising the client that they have missed the payment date.
This lets them know that you have noticed.
Over the upcoming week or two, continue to contact the client's office by phone, requesting payment of the invoice and highlighting your terms of payment.
Remain calm and polite but be firm.
Firm politeness keeps relationships alive and most clients will soon realize that you are on the ball and they won't pay late again.
If you're still not getting anywhere and you're not prepared to compromise despite having discussed things with the client, proceed to the next step. , If you cannot obtain the money owed to you despite trying, it is probably time to seek redress.
You can start with a debt collection agency and if your have no luck there, commence proceedings through the courts.
Use a lawyer to assist you (it is really useful to have established a good working relationship with a lawyer as part of your freelance business for just such events).
You will need to identify the costs involved and whether going to court will be beneficial.
Many jurisdictions provide very affordable small claims court services to assist businesses, so it pays to look into it. -
Step 3: Keep a calendar reminder of the due date.
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Step 4: Be persistent.
-
Step 5: Seek legal advice and recourse.
Detailed Guide
Invoices serve as a record of services performed.
There is less recourse to following up complaints if you haven't kept a clear paper trail.
Treat invoices in the same manner as a contract; their existence is a formal indicator of work performed and payment promised.
Sometimes payment will be held up due to missing information.
To avoid this problem, ensure that the following basic elements are clearly outlined as part of the invoice:
Description of the services provided Cost and method of calculating (hourly, for total or stage of project, additional expenses, etc.) Detail any permissible additional expenses clearly, such as long distance phone calls, plane travel, etc.
Date and your address and contact details Tax if relevant An identifier for your record-keeping system Your payment terms , If the invoice has not been paid on time, send a reminder notice or telephone and politely request information about the progress of payment.
Calling is useful because it lets people know you are onto the matter and it also helps you to work out whether it's an oversight, or what the delays might be.
Try to reach a solution together as to payment if needed.
If the client is having temporary cash flow problems, or is out of town, or has misplaced the invoice, these issues can usually be worked through. , The day after payment is overdue, send a reminder letter to the accounts division or payment officer, advising the client that they have missed the payment date.
This lets them know that you have noticed.
Over the upcoming week or two, continue to contact the client's office by phone, requesting payment of the invoice and highlighting your terms of payment.
Remain calm and polite but be firm.
Firm politeness keeps relationships alive and most clients will soon realize that you are on the ball and they won't pay late again.
If you're still not getting anywhere and you're not prepared to compromise despite having discussed things with the client, proceed to the next step. , If you cannot obtain the money owed to you despite trying, it is probably time to seek redress.
You can start with a debt collection agency and if your have no luck there, commence proceedings through the courts.
Use a lawyer to assist you (it is really useful to have established a good working relationship with a lawyer as part of your freelance business for just such events).
You will need to identify the costs involved and whether going to court will be beneficial.
Many jurisdictions provide very affordable small claims court services to assist businesses, so it pays to look into it.
About the Author
Kimberly Miller
Creates helpful guides on DIY projects to inspire and educate readers.
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