Late payment of your freelance invoices is not only inconvenient and time-consuming but can play havoc with your business cash flow.
Of course, there are many reasons why clients might pay late, but here are some of the most common ones and what you can do about them.
1. They mislaid the original invoice.
It’s not unusual for paperwork to go astray or for a client to genuinely forget to pay an invoice – mistakes happen. Furthermore, it’s for you to remind your client when an invoice, for whatever reason, hasn’t been paid.
What you can do
Good invoice software like Invoice Ninja allows you to create appealing and professional-looking invoices that you can send at the click of a button (reducing the likelihood of it getting ‘lost in the post’), as well as email automated payment reminders. You simply set up the frequency, and your clients will get reminders when it’s time for them to pay.
2. They dispute the invoice.
One of the most common reasons invoices don’t get paid is due to either a discrepancy over the amount due, work completed, or erroneous information on the invoice. You need to identify what the issue is as soon as possible.
What you can do
Always double-check your invoices before you send them out. Using professional invoice templates can help ensure everything that needs to be on the invoice is included.
If your client has a genuine discrepancy, then you need to resolve it before your invoice can be paid. Having a written agreement in place that details your payment terms, fees, and conditions should help iron out any issues at the beginning, and it also acts as a term of reference for both parties for the duration of the project.
3. They have different invoice payment terms and processes than you.
It’s not unusual for larger corporate clients to have different invoice payment terms than you. Some might pay in arrears or on a specific day of the month. They may even have longer net payment terms – even up to 60 days or longer.
What you can do
Ensure you know their payment terms and conditions before you commence. This should be laid out in the written terms of agreement and sorted out during your client onboarding process. Also, ensure you know who (and what department and cost code) is responsible for payment and procurement, as well as the name of the contact in case of a dispute. You should also consider what your late payment policy is – and communicate it clearly.
4. They are unsatisfied with the work.
No freelancer likes to get negative client feedback on their work, but handling feedback effectively is part and parcel of running a freelance business. If they are unsatisfied with the work, and your client proposal and written agreement were specific about providing work to the client’s satisfaction, your invoice will most likely not get paid.
What you can do
Communicate clearly and find out exactly what the problem is – it might be something you can quickly rectify and get your invoice paid. You should also check your written terms of agreement (to see if you allow for revisions of your work if applicable) and see if payment was on completion of work completed to the client’s satisfaction.
You can help avoid negative feedback concerning your invoice processes by using Invoice Ninja. We offer user-friendly invoice software with some great features. Everything to help you look professional, get paid on time and make a good impression on your clients.
5. They can’t afford to pay.
It might be that your client has cash flow issues themselves, or they could be owed money they need to pay you.
What you can do
In this situation, getting full or partial payment upfront would’ve been advisable. This can be 100% of the invoice or less and is common practice for freelance project work, especially with a new client.
Alternatively, if you can afford to, rather than lose the client (and your money), offer a payment plan so they can pay in installments.
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If you are struggling to get your invoices paid on time, using reliable and client-friendly invoice software can go a long way to reducing some of the most common reasons clients pay late.
With Invoice Ninja, you get lots of helpful features to get you paid on time, in addition to professional-looking invoice templates you can brand and make your own.
Invoice Ninja offers free and paid plans. You can try it for free here.
Let’s make it easy for clients to pay you so you get paid on time!
