How to Bill New Clients And Get Paid On Time
If you’re a freelancer, you know that one of the biggest challenges is getting paid on time by your clients. Late payments can wreak havoc on your cash flow and make it difficult to pay your own bills on time. And if you’re new to freelancing, you may not know how to deal with late-paying clients.
In this article, we’ll give you three tips for getting paid on time by your new clients. We’ll also share some advice on what to do if a client is late in paying you.
Following these tips can help you avoid the financial stress of late payments and keep your business running smoothly.
1. Invoice promptly
The best way to avoid payment issues with your clients is to use an invoice maker free to create your invoice then invoice promptly. Make sure to invoice clients as soon as the work is completed. Aim to invoice within 24 hours of the work being completed if possible. If you invoice too early, your client might have the payment sitting in their inbox for a long time, which can be awkward.
If you don’t invoice promptly, you might forget to do it altogether. Some freelancers have one client who pays them every six months, and then another client who pays them every week. That’s because the method by which you charge your clients can affect how quickly they pay you.
2. Get payment upfront
Most clients will not be able to pay you upfront, especially if they’re new to hiring freelancers. If a client is unable or unwilling to pay you upfront, be careful because there’s a good chance they will be late in paying you. You can mitigate this risk by charging a deposit or having the client sign a payment agreement.
A payment agreement is a written contract that includes the amount of money the client is paying you and the due date for when that money must be paid by. If a client signs a payment agreement, they are legally bound by the terms of the contract. If you don’t want to use a payment agreement, you can charge a deposit instead. A deposit is a certain amount of money that the client pays upfront.
3. Charge late fees
If a client is late in paying you, you can charge them a late fee. You can also charge a late fee if a client is simply taking too long to pay. A late fee is a contract breach, which means you can charge interest on the outstanding amount or take legal action against the client if necessary. The amount of the late fee should be written into your contract with the client.
You can charge a late fee of $10, $25, $50, or whatever amount you feel is appropriate. Some freelancers charge 5% of the outstanding amount each week as a late fee.
4. Send reminders
If a client is late in paying you, you can send them a friendly reminder. Most clients will appreciate this nudge and will get the payment out to you as soon as possible. The type of reminder note you send will depend on the situation.
If the client is new to freelancing and simply forgot to pay you, a gentle reminder note may be enough to jog their memory. If the client has a history of being late, you may need to send a sterner reminder.
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