Guide to chasing late payments for SMEs and Freelancers

Raising invoices, keeping track of expenses, and filling out tax returns are all part and parcel of being a freelancer. Freelancers are aware that there are a lot of administrative tasks involved in their side hustle as well as being the contractual employee for a client. 

On top of doing the job, there is also an emotional tax that giggers experience – the toll on chasing late payments. Cash Flow management is more than just sending invoices to your clients and waiting for their payment; you also have payments you need to settle, and if you don’t have the funds to pay for those then you’re at risk of not keeping your freelance business afloat. 

Whether you’re an SME owner or a freelancer, part of your role is to ensure that delayed payments are settled quickly before they affect you.

Know your clients

When a potential client comes to you, it is a basic task to do a bit of background research to know if there are any red flags to be aware of. You may view consumer reviews online about them or have other freelancers comment on your prospect customer. Having known all that, you can accept an offer and make sure that their contact information is logged in your contacts to easily reach out to them. 

Make it easy for clients to pay

As a freelancer, you should be flexible on payment arrangements. You should offer diverse options for accepting payments like cash, over the counter payments, bank to bank transfers, eWallets or card payments. There are a variety of invoice softwares that allow you to select your payment method and have your client make a payment with just one click of a button. 

Payment first policy

It might sound rude to have a client pay first for a project that hasn’t been started but the truth is, instead of chasing clients and asking why their invoice is overdue, it is better to put your time and effort to other clients who are willing to pay for you on the agreed date. You can halt the previous unsettled project while waiting for full payment. 

Contract is contract

It is vital for every freelancer to prepare a contract of agreement before starting a project because it specifies terms and conditions between both parties and covers everything from expectations to terms of payment. Your contract might include that you will be requiring a 30 percent deposit, 50 percent half way through, and 20 percent when completed.

Be polite

Although it is a nuisance if clients go overdue on their invoices, it is important to stay professional in the field. Ask your clients politely and hear them out. 

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