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Getting Paid on Time as a Freelancer and How to Avoid Late Payments
Freelance is seen as the future and there are a lot of reasons why the number of freelancers is on the rise. As a freelancer, one of the biggest challenges is getting paid on time. Late payments can not only cause financial strain but can also damage your professional reputation and make it difficult to plan for the future. Before starting any work, make sure that you have a clear and concise contract in place that outlines the payment terms. This should include the amount to be paid, the payment schedule (e.g. 50% upfront and 50% upon completion), and any late payment fees. If you are working with a new client and are worried about getting paid on time, try to negotiate more favorable payment terms upfront. This could include requesting a larger percentage upfront or shorter payment intervals (e.g. weekly instead of monthly). You will find the below tips useful:
Recommended: How To Create A Freelancer Contract That Works For Both Parties
Autonomy
Freelance gives you freedom, you are your boss when you become a freelancer, and unlike an employee you control everything that has to do with your line of work, this includes your work hours, the clients you work with, how much you get paid for a job, how and when you get paid.
This can increase one's commitment to a job because when you have the freedom to decide the terms of agreement of a collaboration you would choose along the lines of your abilities, vision, and passion, this is as opposed to it being decided for you and then you would have to work with someone else vision which might not align with yours.
Flexibility
With freelancing comes flexible work hours you won't need permission to take some time off work. Most freelance jobs can be done remotely hence you can work on the go irrespective of where you are be it on a vacation. You can create time for family and friends, which 9-5 jobs would not allow you to do. Since your work time and place are solely your decision to make, you can create time for anything so long as you're able to meet up with the client's deadlines.
Purpose
People these days are trying to find purpose in everything they do. The younger generation tends to question the purpose of everything, freelancing gives you the chance of finding purpose in what you are doing.
Despite the many benefits of this venture, there are quite some challenges and one such is how to secure payment on time. Since most freelancers work remotely, payment is also made remotely, perhaps in a different currency from that of your country, so it might take some days before you can convert it to your local currency.
I am going to list and explain some measures you can put in place to secure fast payment:
Fix your price
The first rule of business is you should set your price. One thing that can delay payment is discrepancies in prices you have to get that properly sorted out before you commence the job, if you are in a freelance marketplace it would be easier to set a price as you are to fill a provided space with the amount you want to charge. If you are not in a freelance market, ensure you discuss the price, and both you and your client should agree on it, when the price is fixed and decided then you can commence work on the project and the client can initiate the agreed payment as soon as possible to complete the task, rather than spend more time discussing the prize.
Have a Payment Platform
Have a Payment Platform you can trust and inform your client about it. The wrong payment platform can also cause payment delays. There are a lot of payment platforms e.g. PayPal, Payoneer, etc, and the efficiency of these platforms depends on the country you are in, some work better in some countries than others, and you would have to research these platforms. The platform you choose should be effective in your country of residence and also convenient for both you and your client to work with. Another thing you should consider when choosing a platform is its service fees. You have to make sure you are comfortable with that before using it. You should also find out how long it takes to process your payment to your local bank, all this information would help you plan and get paid early.
Complete Your Work Early
Sometimes you might just be the one causing your payment delays, by not keeping to deadlines. Meeting up with deadlines has some good benefits, one of such is it would facilitate the early release of your payment. Your client would only pay when you complete your task. When you keep to deadlines this would make the client take you seriously and not toy with your payment, however, if you are fond of skipping deadlines the client might do the same when it comes to paying you. What moral grounds do you have to ask a client to keep up with his end of the bargain when you keep flouting yours? You might just solve the problem of late payment and save yourself the stress of sending payment reminders if you would carry out the project on time and meet up with deadlines.
Inform Your Client About The Penalties for Late Payment
At the commencement of the collaboration inform your client about the penalties for late payment this will help motivate him to pay early. For example, you can attach a 10% extra charge for late payments, and it should be stated clearly in the agreement. When people know that they would pay more if they default they are most likely going to be quick with the payment.
Engage The Services Of A Third Party
Freelancers who work from freelance marketplaces already have the services of a third party to enforce payment, an example of such a marketplace is upmychain.com this freelance platform ensures payments are made when due. If you choose not to join a freelance market you can hire an unbiased third party to secure payment.
Submit Your Request for Payment Early
Late Payment can also be caused by the payment mode you choose, It may take days or maybe a week for some payment platforms to process your payment request, you should factor that into your plans and ensure early payment, your local bank may also request for some time to process payment, so it will help if you make the request early enough.
Ask for Deposits
One safe way to secure your payment is by asking the client to pay a deposit, this deposit could be either a fraction of the total cost or the whole money. Paying a deposit is a way for the client to show commitment. It is important as a freelancer to always ask your client to pay a deposit before you commence the work. If you are working from a Freelance market you wouldn't need to worry about getting paid because the management of the platform would guarantee your payment is released on time, however, if you work independently you would have to do the job of demanding your payment and asking for deposits.
There you have it guys, those who work remotely despite all the benefits still struggle with the issue of payment, however as you have just read there are solutions to this, find out in which area you are lagging and buckle up. Some of the issues of late payments are caused by the freelancer, and some may be the fault of the client but whatever the cause may be, there is a solution. Again those in Freelancing platforms are most likely not going to have the issue of late payment, the management of the platform provides security for your money. You can start your freelance career on UpMyChain as well.
Easy Answers
1. Fix Your Price
2. Have a Payment Platform
3. Complete Your Work Early
4. Inform Your Client About The Penalties for Late Payment
5. Engage The Services Of A Third Party
6. Submit Your Request for Payment Early
7. Ask for Deposits
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