Missed or delayed payments are one of the most demotivating things that can happen to a freelancer.
Sadly, some freelancers experience working hours on a project and not receiving compensation afterwards.
This experience gets even more frustrating when freelancing is your only source of income.
Applying the tips in this guide will help you minimize the risk of delayed payments or unpaid invoices.
As they say, “out of sight, out of mind.”
Here are some tips to regularly keep your client up to date:
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Create a Contract
A job contract helps your clients take your role as a professional seriously.
An agreement sets expectations on both ends and emphasizes that your relationship is professional.
Review your agreement before sending it over.
The site lets you customize and download an “Independent Contractor Agreement” in Word or PDF format.
For instance, a free invoice app likeBookipihelps you send and track invoices.
The app lets you itemize your charges and add payment terms, aside from other helpful features.
The app also sends reminders if your client forgets to pay you after a prescribed period.
Choose an incentive that will motivate them to send their payments earlier.
To avoid this, you’ve got the option to also give penalties for late payments.
For example, a half-month delay may incur a two percent fee.
As a reminder, also include late payments in your invoice.
If your client paid you on time, you could just put zero on the charge for late fees.
For example, their business might be affected by the recession, or they might have a personal emergency.
In these cases, you may waive the fee.
Your client will be grateful for your consideration, and you’ll have acquired a loyal customer.
There’s no excuse for not having multiple payment options when you have digital options available.
you might opt to get paid by debit card, credit card, or apps like PayPal and Payoneer.
Protect Your Output
There’s nothing more frustrating than seeing your unpaid work on someone else’s site.
To avoid this, protect your output and don’t release it until you’re paid.
For instance, you might ask for a 50% down payment before you get to work.
This way, your hard work doesn’t completely go to waste.
Clients must deposit funds in escrow if you’re being paid a fixed price.
These are then released to you once your work is approved.
Registering on credible freelancing sites may save you time and stress in case of conflicts.
They may have provisions for you to file a dispute in case of non-payment.
Sadly, even freelancing sites that offer payment protection can be a hotbed for scams.
Also, be wary of jobs posted on Craigslist, Facebook, and other online platforms.
Do a background check, protect your documents, and learnhow to identify scammers on freelancing sitesand social media.
Use a Business Management Tool
Business management tools help you organize the most common freelancing tasks from one platform.
Is It Time to End Your Contract?
How long has it been since you’ve been paid?
If your client has made it a habit not to pay, move on and end your contract.
If they experience a downturn in their business, wish them the best and end positively.
Think of it this wayyou’re opening the doors to better freelancing opportunities once you let go.
A missed payment for a job you worked hard for is never your fault.
But the reality is that both new and experienced freelancers are susceptible to this problem.
By following these tips, you might avoid legal disputes and minimize the risk of delayed and unpaid payments.
