What Do You Do When a Client Pays Late?

What Do You Do When a Client Pays Late?


Raw Transcript

Get ready for freelancing strategies, hacks and tactics to help you skyrocket your success brought to you by Freelancer masterclass calm. You’re listening to freelancing school with your instructor Mike Volkin.

What do you do when a client pays late? That is the subject of today’s podcast. I’ll tell you from experience. You’re going to experience this as a freelancer. Everyone experiences a late paying client or a client who doesn’t pay at all so I’m going to show you how to mitigate that. And actually, this question came in from Cora question which I’m very active on so follow me on Cora under Freelancer masterclass if you don’t already. The person asks as a freelance writer, what can you do about a publication that pays but always pays late after much chasing up and this is something that is very common, so This person obviously is a writer and works for someone has an anchor client probably that they’re referring to as a publication. And they always have trouble getting paid. So let me give you some advice you can translate this advice into your own own freelancing business. The first thing you should do is set standards from the very beginning. Okay? So you should tell them that payment is to be made on this date on that date. Now, the bigger the company, the less likely you are to demand payment, they probably have a payroll system in place already bookkeeper, CPA and CFO the whole bit. But if you can, if the company is small enough, you tell them when you like to get paid, and how often so weekly, monthly, end of the month, beginning of the month, 50% up front 50% you know, after you do the work, whatever you prefer. So what you have to do really is have a heart to heart talk with the person that is hiring you if it’s the same person who will be paying You, if it’s not then set a separate appointment for the person who will be paying you after you get higher. And you tell them that this is the way that you normally work and most of the time, they will respect that. But if you do not set those standards, it will not happen. And you can obviously do that a number of ways, nicely worded emails, but phone call is the best. And what I like to do after a phone call is follow up with an email to recap the conversation. You should always have an agreement in place. And in that agreement should be a paragraph or a sentence or two about late fees and yes, you need to exercise late fees for so many years. I had late fees but never really imposed them and now I do because you set expectations with the client early and you can if you like let one or two late fees pass but let them know that I am letting this late fee go but in the future, it will be imposed that not mean to say something like that I would expect that if I was paying somebody late in terms of expectations and other tip I should give you is sending invoices on time. If you send invoices even a day late, you are telling your client that it is okay to pay late because I’m sending invoices late, you’re subconsciously telling them that you have to be very strict with the date in which you send payment. If you have an agreement with that client, that your invoices will be sent on the 28th then you should put in your calendar. As a reminder to send an invoice on the 28th. What I like to do is I like to set all my invoices with all my clients to set on the same day, the last working day of the month and then I block off half a day just to do invoices for all my clients and that’s my half day right there. That way I’m never late, it’s scheduled and it’s all done in one bulk sequence. Okay, so those are some quick tips with how to get a client to pay on time and setting expectations early. Enjoy

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Transcribed by https://otter.ai

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