How to get paid on time as a freelancer.
Being a freelancer can be a rewarding experience. You get to work flexible hours, take on projects that personally appeal to you, and you are likely to have more independence over your creative process and the output of your work relative to a 9-5 office job.
However, a common hurdle in the gig economy (freelancing industry) is the issue of getting paid on time by clients. There is no shortage of horror stories from freelancers about clients paying way past the due date or, in some cases, completely ghosting when it’s time to pay.
To avoid late payments as a freelancer, here are a couple of precautionary measures you should take:
Research your clients before committing to work with them: Getting an offer as a freelancer can be very exciting, and it’s so easy to want to jump into the project immediately, but the first thing you should always do when you get an offer is properly scoping out your client.
Ideally, you want to hear from people who have worked with them in the past to figure out what their reputation is like and what their track record is when it comes to payments. Checking Glassdoor reviews is an excellent place to start.
That way, you can make an informed decision about whether you should proceed to work with them or not.
Always draw up a contract: Having a contract for each client you work with is very integral to freelancing. You don’t want a situation where there is some form of dispute around what the agreed terms of payment were. Drawing up well detailed and precise contracts greatly minimizes the risk of that happening.
Charge by milestones or collect deposits: Imagine putting in months of work and effort into a project only for the client to end up ghosting you. A good way to avoid scenarios like that is to charge by specific milestones.
Every time you hit a milestone, you know you can expect payment. If the client defaults on paying for milestones without explanation, that’s a signal they are likely not planning to pay upon completion of the project.
You can also collect deposits in the form of an agreed percentage of your total billing upon starting the project.
Invoice promptly: Always send your invoice immediately it’s time to collect payment. It’s easy to assume that the client should have it in mind to pay you when you hit a deliverable, but you shouldn’t take any chances.
You can send a Sendcash payment link alongside your invoice for clients outside the country to receive your money. Easily set up your payment link here.
Send regular reminders: If you are dealing with an unpaid invoice, follow up constantly with regular reminders. There’s a possibility that your client may have missed your invoice in their mail depending on how swamped they are. Sending follow up emails can help draw their attention to your invoice.
Charge on late payments: When drafting the terms of your contract with your client, it’s a good idea to stipulate that late invoice payments will attract a fee. The expectation that past due payments will trigger an interest can be effective in getting your clients to pay on time.
Did you enjoy reading this? Tap the button below to share.