Freelance work is an agreement between you and your client; once you deliver your work, it becomes the client’s responsibility to pay you promptly.
Getting paid on time is critical because it can affect the freelancer’s cash flow and damage the relationship between the freelancer and their clients. Thankfully, here are a few things freelancers can do to ensure they are paid on time. When used the right way, these tips can ensure prompt and regular payments that are done on time.
Make Payment Terms Clear
Every freelancer should have their payment terms written down and sent to their client before work commences. It is important to ensure the client understands the payment terms beforehand. These terms should explain payment processes as well as what you expect of the client once work is done.
Do include agreed-upon payment methods, notice periods, applicable late payment fines and payment timeframes. These terms can be included in the project proposal or on deposit invoices.
Use Upfront Payments to Weed Out Bad Clients
While asking for an upfront payment is a great way to get the resources you need to get the work done, it is also a great way to weed out clients who will give you lots of headaches in the future. A 50% deposit is standard but many freelancers ask for a 25-30% deposit before working with new clients.
By asking for the prepayment, freelancers can know which clients will treat their payments as mandatory and those who will give them trouble in the future. An upfront payment is also a great way to get clients invested in the projects you are working on and ensure work is completed and paid for promptly.
Invoice Quickly
Quick invoicing is very important as it helps freelancers get paid quickly and does so by leveraging the power of human psychology. When you send an invoice as soon as work is done, clients understand that the payment is urgent. The opposite is also true for when you send an invoice days later. Some clients might not deem the payment as urgent and so delay it by a few days, too.
Set Shorter Invoice Timeframes
It is standard for freelancers to set the payment period for their invoices at 30 days. When you do this, a client might relegate that task to the back of their minds and might even forget about it unless you remind them. Setting a shorter invoice period, such as 7 or 14 days, will keep the payment at the front of their minds and they will be likely to pay you faster. If you will be setting a shorter invoicing period, ensure that the client knows about it beforehand and that it is included in the payment terms to avoid any confusion.
Make it Easier for Clients to Pay
If there is any friction in the payment process or if a client needs to learn how to pay you, you can expect delays when getting paid. To avoid this, use payment platforms that are familiar or are easy for your client to use. A great solution is to use the invoicing feature provided by popular payment platforms like PayPal. Once a client confirms the details of the invoice, they can pay you in one or two clicks and you will receive money in a few seconds.
If popular and familiar platforms are not available in your region, there are other solutions that can be used to send and receive money around the globe. Solutions like Ria Money coupled with the Ria Money Transfer App work really well because the website is very easy to use and the app will notify you as soon as you are paid.
In addition to ease of use and a great user experience, check that the platform is supported in both yours and your client’s country. It should also support both of your currencies and provide numerous payment and withdrawal options to make things as smooth and easy as possible for you and your client.
Ensure Your Invoices Stands Out
Appearance matters and this applies to your invoices, too. Black and white invoices might look like other invoices and documents in your client’s inbox or desk and that makes them forgettable. Colourful and distinct invoices catch the eye and stand out in your client’s minds. This helps clients remember the invoice and can lead to it being paid sooner.
Itemise Your Services
A common cause for payment delays is clients asking for clarifications for services offered and that they need to pay for. Going back and forth in this way can lead to a delay of days, if not weeks. Itemising the services provided and ensuring everything is as clear as possible helps eliminate this back and forth. This means the client will understand the invoice the first time they read it and will be happy to pay because they know exactly what they are paying for.
Set Up Payment Reminders
A client can forget to pay an invoice for a myriad of reasons. By setting up a reminder system, you can nudge the client to pay sooner. Ideally, set a reminder for 24 hours after the payment passes and then a few days after this first reminder goes out if they do not complete the payment after the first reminder.
Complete the Work within the Deadline
Completing work within the deadline and ensuring that it is done according to the specifications and requirements shows clients that you respect their time. Clients respect this and will reciprocate by paying you as soon as you request payment or send an invoice. Disrespect, especially of other people’s time, is one of the reasons why clients might feel some type of way of paying you and end up delaying your payment.
Getting paid on time is critical, especially for freelancers who work on separate projects and who are not on a retainer or recurring payment plan. When you are paid on time, you can focus on delivering the best services instead of following up on payments and late invoices.