One of the most stressful things about being self-employed is managing your cash flow. This is especially difficult when clients don’t pay you on time. What can you do to make sure your invoices are handled promptly? And if a client is late, how should you address it, especially if you want to work with this company again? Is there ever a point at which you need to involve a lawyer?
How Freelancers Can Make Sure They Get Paid on Time
Keep a paper trail and follow up.
August 15, 2017
Summary.
One of the most stressful things about being self-employed is managing your cash flow. This is especially difficult if clients don’t pay you on time. To make sure your invoices are handled promptly, start by doing your homework. Before you consider a job, find out how well funded your prospective client is and talk to other freelancers who’ve worked for the organization. Get it in writing. Never take on work without having a contract that stipulates the scope of the project and the terms of payment. Require a deposit. For longer projects, it’s also standard to ask for milestone payments so that you’re guaranteed compensation over time. Follow up. If you’ve followed up and the client is unresponsive, visit their office in person. Be vigilant and keep a paper trail. Consider hiring a lawyer. Conduct a cost benefit analysis that involves calculating the amount that’s owed to you, your odds of success, and the hassle of hiring — and paying for — an attorney.