5 Ways To Get Paid On Time And Protect Your Freelance Business

No freelancer or contractor enjoys chasing invoices or wondering when they’ll next be paid. It can feel awkward, mentally draining, and sucks precious time out of the day.

If this is you, you’re not alone. According to the Independent Economy Council, around 74% of people don’t get paid on time, while 72% have outstanding invoices that are still unpaid.

Here are some strategies freelancers can implement to help protect their income, time, and well-being when entering new client contracts.

1. Vet Clients Before Saying Yes

Just as potential clients will research you, it pays to do your research on the client, too. When you’re in the initial stages of talking with a lead, check them out on Glassdoor, LinkedIn, Google business reviews and other review sites. Conduct a Google search for any news or history on the company that could raise red flags.

Discovery calls are an opportunity to ask questions and dive deeper into how they work, their expectations, and whether you’re a good fit working together.

2. Always Have A Freelance Contract

Even if the project is small or you’ve worked with the client before with no problems, a contract is an essential safety net for your freelance business. It helps you to feel confident working with a client, knowing you have terms and conditions to fall back on if things go pear-shaped. A contract should cover key things, such as a clearly defined working relationship and scope change fees.

3. Don’t Be Afraid to Request A Deposit

Requesting a deposit upfront (e.g., 20% or 50%) before starting work can be a smart move. A deposit offers several benefits, such as reassurance that the client can pay, that they’re committed to the project, and helps filter out the time-wasters. It can also be a signal of professionalism from your end, too. It shows you take your freelance business seriously and value your own time and expertise.

If it suits your type of freelance work, you could go one step further and implement payment milestones. Having payment milestones throughout the project, aligned to your deliverables, can help keep the project moving and may reduce your financial risk.

4. Use Automatic Invoicing Software

Although sometimes necessary, no one likes sending follow-up emails about overdue payments. A great way to reduce your time writing these is to use invoicing software that automatically sends invoices (and follows up on them after a set number of days). This could save you hours of time and the hassle doing it manually – not to mention less awkwardness – so you can get back to doing more productive tasks.

5. Advocate For Yourself With Professionalism

Last but not least, remember that you must be your number one advocate. When you work alone as a freelancer, it’s on you to set the boundaries and expectations for how you run your business. Show up with confidence and professionalism at every contact point, establishing good communication and rapport with your client from the start. If troubles arise, handle disputes calmly and respectfully, yet firmly.

No freelancer wants to be in a position where they need to fall back on their contract or payment terms. However, having clear boundaries and frameworks in place before you start work can help set you and your clients up for success.