CHASING INVOICES FOR FREELANCERS
The thought of chasing late payments might sound embarrassing but with the right words, there is nothing to be afraid of. An invoice is a list of goods sent or services provided to the client and charging the correct amount of money is vital to keeping the relationship going. It is perfectly acceptable to charge the agreed amount for services and goods, payment should be expected on time, if it is not paid in a timely manner, it can hurt the relationship, and also cause additional work in chasing the invoices.
Although it is frustrating to chase payments it is important to keep in mind that the success of your freelance career relies on you getting paid on time. The contract between you and your employer should include a detailed understanding of the payment process. When you will be paid, how you will be paid and what rates you will be paid should be in detail, also, in the contract should be a statement about what happens if there is a late payment, and if there are any additional fees to be charged.
So, what are some tips to avoid late payments?
- SEND INVOICE EARLIER
There is nothing more effective to avoid late payments than updating your client the total bill ahead of time. This would give them ample time to prepare and in fact, would help you and the customer to budget payments. If you send the invoice as soon as your service is rendered it manages expectations and shows that you are organised.
- REQUEST PAYMENT BEFORE SERVICE
In number one, we stated that as soon as service is rendered payment should be requested. The next tip to avoid chasing invoices is to ask for advance payment. This could be a small amount or fraction of the total sum, or it could be for the whole payment (depends on the client-worker agreement). It is common to receive 50% up-front and 50% on completion of the job. Some people have difficulty asking for money, but it is part of the process and not to be shied away from.
- EXPLAIN EVERY CHARGE
One reason why some freelancers get delayed payments is because the customer is not well informed about the details of the service. As a gig worker, it is important to raise and disclose any possible gray areas so that invoices would continuously flow. Moreover, being transparent also gives positive feedback to your freelancing career.
- PENALIZE LATE PAYMENTS IF NECESSARY
Getting late payments occurs occasionally but in the gig economy, it is a tip for you as a freelancer to be clear with your terms because after all, time is gold for every gig worker. As necessary, asking for a penalty should not be seen as a negative when the situation really requires it.
- CUSTOMER SERVICE
A friendly regular call can always remind the customer that you are working for them and that payment is due, without even mentioning payments. Sending the invoice is always the first step, but staying in contact with the customer and building the relationship always helps to keep you on their mind.
These are some of the tips for every gig worker who’s quite unfamiliar with chasing invoices.
You can also ask the simple question “Did you get my email?” and use an excuse like “I have noticed that some of my emails have not been delivered, so I have switched email accounts”. Shifting the “blame” from them to you even if you are not to blame can remind them that their payment is due.
