Getting paid late can have a significant impact on a freelancer’s cash flow, as freelancers are usually working from project to project. However, getting paid on time is one of the activities every freelancer would want to avoid. In this article, we explain how you can get paid faster without engaging in uncomfortable conversations with clients.
Set up automatic invoice reminders
With the majority of invoicing tools, you can write a personalized reminder message when creating an invoice and define when it should be sent to your clients
- This is especially useful if you are working with a lot of clients and your process of sending reminders has become inconsistent
Use expense automation solutions
As a freelancer, you often can’t carry all expenses before you get paid, so this can come in handy
- Companies that use this software can pay freelancers faster
- How does it work?
- You spend the money on a product or service, log it in the expense automation tool and submit a copy of a receipt. The financial controller or accountant is notified and can proceed with reimbursing the cost
Build your personal brand
By building your brand, you can get more gigs to choose from and become more selective in who you work with
- Stop selling your time and invest it in working out more scalable ways of earning money
- There are at least two ways to try and grow your brand
Sign documents online
The faster the document is signed, the faster clients can make an upfront payment for your services and you can start working on your project.
- Some tools connect with Apple Pay and a bunch of other payment services, so it is convenient for international clients.
Wrap up
Getting clients to pay on time doesn’t have to be time-consuming
Ask for a late fee
This creates an incentive for clients to pay on time
- The amount charged should not exceed 1.5% of the project fee, unless you find a larger fee easy to justify
- Set a due date and bring it up to the client if the client fails to pay
Choose clients wisely
If a new client who wants to work with you is just too similar to that client profile and raises red flags, it’s always better to pass on such projects.
- Identify problem clients by adding testimonials from clients you consider to be your ideal customers.
