We all aspire to have fruitful collaborations. Unfortunately, it doesn’t happen all the time. Sometimes we come across unreliable and unprofessional clients. If you are a freelancer, we suppose you’ve had at least one situation in which you wondered what to do when a client is delaying or avoiding to pay? We have the answer.
Don’t Hesitate to Contact the Client
Asking for your own money is not a fun activity. But sometimes, you need to remind a client what their part of the deal is. There are different means of contact you can use to get in touch with a client and find out why they are delaying or avoiding to pay and when you can expect the money.
There’s Nothing Wrong With Sending a Follow-up Invoice
You have sent an invoice, but you didn’t get your money. Why? Among many reasons, there’s a) a client may have forgotten about your invoice or b) invoices sometimes slip through the net. If that’s the case, the simplest solution is to send a follow-up invoice.
It’s all about time frames. A client will tell you how much time you have to complete a particular task, but you also need to be clear about the payment. Once you deliver your work, a client should pay for it within the time frame you defined.
If a client doesn’t stick with an agreement, a friendly reminder, in the form of a follow-up email, is the best way to deal with a problem.
Sending a Follow-up Email Did Not Work. What Should You Do?
If a client doesn’t answer your emails, don’t hesitate to pick up the phone and initiate a verbal conversation. It may be the best way to clear up all misunderstandings and determine why they refuse to pay for your services. Another option is to contact their associates or assistants; maybe they can help you.
Consider Hiring a Collection Agency
Dealing with irresponsible and unprofessional clients is time-consuming, so you have to create a backup plan. Hiring a collection agency may be it. The agency will get the job done; you’ll have your money and the satisfaction of not losing your time on unpleasant conversations. Hiring a collection agency is an expense, but it’s justified, primarily if a client owes you a significant amount of money.
Take Legal Actions
Sometimes there are no alternatives for legal actions. If you are a small business and have a problem charging for your services, consider hiring a lawyer. It is expensive and time-consuming but if your business depends on that payment, having a professional by your side is the most reasonable solution. You may run out of ideas on how to negotiate with a client that refuses to pay for your work, but your legal representative won’t.
Stay Professional Even If a Client Is Delaying or Avoiding to Pay
It doesn’t matter what the reason is; if a client refuses to pay for your services, stay calm and professional. Don’t lose your temper. Even if a client shows disrespect, that’s a reflection of their personality, not yours. Your job is to be rational and find a solution most suitable for both of you.
Try to put yourself in your client’s shoes. Don’t jump to conclusions. Maybe he or she struggles with something or has a problem with money flow.
Remember, an open conversation can clear up all misunderstandings.
Can You Avoid Late-Paying Clients?
People say: Learn from your mistakes. It’s no one’s favorite method of learning, but it’s the most efficient. There are things in business you can’t prevent, e.g., late-paying clients. However, you can use those situations as lessons for future collaborations. These are our tips.
Don’t Neglect the Power of a Contract
Before you start to work for a new client, make sure to draw up a contract. The document should contain details about the project and work you have agreed to do, as well as prices and when payments are due. It should also include the client’s expectations. A contract is a written proof you can refer clients to if they refuse to pay for your services.
Define Your Payment Terms
Establishing your payment terms is the best way to avoid unpleasant situations. Small businesses, in particular, don’t have enough means to wait for late-paying clients. If you charge fees for unpaid invoices, your clients should know that in advance. Of course, consider giving your clients some space and inform them about additional charges that may occur if they don’t settle the balance within, e.g., 48 hours.
Flexibility Is the Key to Long-Term Success
You may come across a client with a limited budget and wonder if it is a good idea to take the job. Remember, money is not always the deciding factor. In those cases, you can offer a discount or installment plans. Either way, you will get your money. On top of it, flexibility may earn you recommendations and new collaborations.
Enable Different Payment Options
Clients love when you give them options. Instead of sending paper invoices, email them. Ideal options for sending online invoices are FreshBooks, Wave, Xero, Fiskl. Enable online payments and make sure your clients can pay you by using their smartphones. Create a PayPal account, accept credit cards, and, why not, checks.
Make this whole process as straightforward as possible. Your invoice should contain a link to a payment processing form. Don’t forget to insert your contact information. It will be easier for clients to get in touch with you if they have any questions.
It Takes Two to Tango
Late payment doesn’t necessarily mean that a client is trying to deceive you. However, if there is a problem, you need to join forces to solve it. In case a client doesn’t provide feedback, determine if the money you are chasing is worth your time and energy. Sometimes it’s better to move on.
