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How do Freelancers get paid on time

How do Freelancers get paid on time

You are a freelance copywriter,web designer or IT consultant. You worked hard to deliver a

great project on time and the client loved your work. You sent in thecommercial invoice right

away, but you have not received a payment yet. What do you do? Has this happened to you or

some other freelancer you know? You bet!

Non payments or delays can reduce the freelancer’s motivation and morale. It becomes difficult

to make ends meet. Here are some ways you can get paid on time.

Have a clear and easy-to-understand contract

It is imperative that you define your terms and conditions to your client at the onset of the

project. This will prevent misunderstanding and payment issues at a later date. Ideally, it should

be put down on paper in the form of a contract and signed by both you and your client. Include a

deadline by which the payments have to be made. For instance, The standard `Net 30’ says you

should get paid 30 days from the day you send the billing invoice.

Ask for part of the payment in advance

If you are an established professional in your field and your work is in demand, clients will be

willing to pay you part of the amount in advance to engage your services. However, if you are

just starting out, it might not be easy to get an advance. You can set milestones and ask the

client to pay you a percentage of the agreed upon sum on reaching a milestone.

Charge interest for overdue payments

Also make it a point to mention the rate of interest charged for overdue payments in your

contract. This usually is good tool to enforce timely payment. Most clients who end up paying

interest once, will try to make sure you get your next payment on time. How you enforce this

clause will eventually depend on your relationship with the client.

© 2011 Apptivo Inc. All rights reserved.

Send complete invoices on time

Send your invoices on time as it would affect the payment. Send the invoice to the accounts

department preferably. The language used in the invoice should be crystal clear and not leave

any room for misinterpretation. What you need is an ideal invoice template.

To simplify the process of book keeping and to ensure that your invoice is sent on time ,

consider using invoicing software such as Apptivo’s Invoice App.

Exchange contact information

One of the reasons for delayed payment is lack of communication. Make sure, you contact the

person or department responsible for making the payment. Exchange contact name, address and

phone numbers with the client and his account department. Make sure you know who to escalate

the issue to if you do not receive your payment on time.

Send timely reminders

Take the trouble to remind your client that your payment is due. This could be done by sending

an email/letter or by making a phone call. Some clients have a policy of cutting checks on a

particular day of the week. If you know this information you can send a friendly reminder to the

accounts department the day before.

Sending reminders is also made easy by Apptivo’s Invoice App.

Legal Action

Legal action is the last recourse. Generally, a threatening letter on the letterhead of your law

firm is enough. Faced with the consequences the debtors usually expedite payments. If they

ignore the letter you can proceed with legal action. Ultimately, if you are successful, the small

claims court will award you damages which include the sum involved, interest and court costs.

Want to use a FREE Online Invoicing Tool? Check out Apptivo’s Online Invoicing Software

© 2011 Apptivo Inc. All rights reserved.

Ultimately, it is the relationship between you and your client which ensures timely payment.

Occasionally, a situation may arise where the client goes bankrupt. To avoid this situation,

charge a significant percentage upfront. This will ensure that you get partly compensated.

Maya Pillai is passionate about helping small businesses and professionals. She is a blogger for

Apptivo's Small Business University