Getting your customers to pay should be the straightforward part of your job. After all, you’ve put in the hard work to find a client, agree on a price, complete the job, and deliver the final product. Ideally, you should be able to relax and let the payments come in. However, that’s not always the case. According to the Credit Protection Agency, nearly 50 percent of freelancers experience consistent late payments on their invoices. In this post, we’ll explore strategies to ensure you receive timely payments for your invoices. We’ll cover steps you can take even before starting the work to help guarantee you get paid fairly and on time.
Before You Work
Send Your Customer a Services Agreement
A services agreement, or a simple contract, is essential for ensuring that you receive the correct payment on time. Before you begin any work, make sure to send your client a services agreement. This document should detail precisely what work you will be performing, how long it typically takes, the agreed-upon fee including any potential late fees, and the payment due date. It should also include any other relevant details. By having these terms agreed upon in writing, you create a clear paper trail that you can rely on if issues with payment arise later. This agreement sets clear expectations and serves as a reference point if you need to follow up on outstanding invoices.
Write Clear Terms & Conditions
Ensure that your payment terms are explicitly stated both in your services agreement and on your invoice. It’s important to eliminate any ambiguity about how much the client owes, when the payment is due, and the consequences of late payment. For instance, instead of just stating “Payment due within 10 days,” be more specific. You could include terms like “Payment due within 10 days of the invoice date” or “To be paid in full by [exact date].” These clear terms remove any uncertainty about the payment amount and deadline, making it easier for both you and your client to understand the expectations.
Ask for a Deposit
To improve the likelihood of receiving payment, consider asking for a deposit before starting any work. Requesting a partial payment upfront, especially with new clients, helps reduce the risk of having to chase down invoices later. If a client is reluctant or refuses to provide a deposit, it may indicate potential issues with their commitment to paying the full amount. Typically, a 50% deposit is standard, but depending on your field and experience, you may adjust this amount as needed. This practice not only secures some of your payment in advance but also helps establish the client’s reliability.
After the Invoice is Issued
Get Confirmation
Emails can easily get lost in a client’s inbox or be opened with the intention of reading later, only to be forgotten. To avoid this, ask your client to confirm receipt of your invoice. Include a request such as, “Please reply to confirm you have received this invoice” in your email. If you don’t receive a response within a few days, send a follow-up email to request confirmation again. This helps ensure that your invoice has not been overlooked and keeps it on your client’s radar.
Follow Up with Your Customer
Following up with your customer after completing a job is beneficial, regardless of whether they have paid their invoice. If the invoice has been paid, use this opportunity to request a review on your website or social media pages. Positive reviews can help attract more clients and build your reputation. If the invoice remains unpaid, reaching out serves as a polite reminder that you are still awaiting payment. This follow-up keeps your request on their radar and reinforces the need to settle the outstanding balance.
Don’t Back Down
Chasing invoices can be exhausting and frustrating, but it’s important not to give up. Occasionally, customers may delay payment or refuse to pay the full amount. In such cases, persistently follow up with regular reminders to ensure you receive the payment you’re owed. If a customer attempts to renegotiate the price after the work is completed, rely on your services agreement and other documentation to support your case. Remember, it’s your hard-earned money, so be firm in your pursuit of payment.
By using these strategies, you’ll streamline your invoicing process and make managing payments easier. Implementing these steps will help you minimize the time spent chasing invoices, allowing you to focus more on your core work and less on administrative tasks.
