Freelancer faces the constant battle of being paid on time and can often be let down by individuals they work for. If you have a history of delivering a service and ending up disappointed by the time you must wait to receive payment, you should continue to read through this guide on how to get paid quicker as a Freelancer.
It is often the case with Freelancers that they begin to feel as if they’re not in control of when they get paid. This should not have to be the case; if you deliver the service you promised to, and you did it on time, your payment should arrive on time as well.
There is no excuse for any business to pay you later or not at all when you have worked for them, so we want to help you understand better what you can do and what you should be keeping an eye out for.
What is the role of a freelancer?
Freelance work is a type of self-employment that is done on a flexible basis and provided for many kinds of business. Freelancers could work on larger or small projects, both short-term and long-term – depending on what suits their skills, availability, and the needs of an employer.
People do not always work freelance as a full-time commitment and instead do it alongside another form of employment. This is becoming more commonplace in the modern world as time goes on.
Some of the most common areas you’ll find freelance work opportunities in are:
- Graphic design
- Marketing, Media & PR
- Financial support (e.g., bookkeeping)
- Writing, editing & proofreading
- Data entry
Freelancing is on the rise in the UK.
It has been reported that there are now almost 2.2 million freelancers in the UK, which is an increase from 2019. Over 1.9 million people state that freelancing is their main job, with a further 239,000 people doing freelancing as a side venture alongside other employment.
With freelancing continuing to prove to be a popular employment choice for many people, it tells us a few things about the state of the business world today. Firstly, people enjoy being in control of their schedules and not working for a boss if they don’t have to. Secondly, more and more younger people are starting to get into freelance work, which suggests limited opportunities are currently available in the workplace today.
The Coronavirus pandemic may well have a role to play in the lack of open job positions people can apply for at the moment. Hopefully, this will rise once again as the world slowly goes back to normality.
Get to grips with invoicing.
As a freelance worker, you are going to be sending out a lot of invoices, so you’ll need to know what you are doing. Get your invoices sent out as soon as humanly possible. This may seem like obvious advice to give, but it is often the basics that are messed up by newcomers to the world of freelance work.
If you fail to be organized, your cash flow will end up on the receiving end of some very negative effects. Remember that cash is king when it comes to working freelance, so be ready to make sure you get hold of the money that is rightfully yours.
If you are struggling with unpaid invoices, change the way you run your business venture and set out some clear guidelines for yourself to follow. Never be afraid to ask a client for updates on payments, and only work with people you trust.
You could even try offering your clients and customers alternative ways to pay. If your customer is struggling to make the payment, consider offering them the opportunity to pay in smaller portions. These aides represent unforeseen income issues at their end, and you still eventually get your cash, regardless of whether it isn’t as you had it first arranged.
Try calling the customer and asking them to make a payment towards the outstanding amount. Ask if they can make a payment on a debit or credit card while on the telephone; this way, the payment is made, and there is no excuse to wait for it to land in your bank account. Sometimes the best option is to take the matter into your own hands and force it through to ensure you get the money you are owed.
Make it easy for people to pay you.
Another point that may seem rather simple from the outside looking in but is often overlooked. If your service isn’t easy to pay for, people will delay making the payment to you. To counteract this, ensure getting the money to you is as convenient and stress-free as possible.
It should never be difficult for people to pay you for your services, so ensure your invoice covers all the information that is needed. You could even include multiple methods of payment here and outline exactly how your customers should forward you the cash.
By utilizing an online invoicing tool, you will make payment easy and allow yourself to track payments you’re waiting for and send reminders to those that need them easily. Look into the different tools available to you at the moment and consider which one would be the best for your type of business. Freelancers often need an extra pair of helping hands, and an online invoicing tool could act as exactly that.
Offer early payment incentives.
If it’s an early payment you are seeking, there is no better route to go down than offering some form of incentive. You could offer a slight discount on the overall cost or a reduction on the next purchase, which both ultimately cost you money, but you’ll be getting your cash paid early. The obvious advantage to this is that you’ll be getting paid before you expected to, which makes life that little bit easier.
This could also go a long way in helping you build a better relationship with your client and turning them into loyal customers. If you can achieve this, your freelancing future will be looking a lot brighter and more secure. Perhaps this could be the time that you stop doing it as a side project and start working on it full-time.
Create some professional relationships
Speaking of building relationships, it is good practice to have some professional ones that will help you to function as a freelancer along the way. If you get to know people better that are responsible for providing you with money, you’ll be able to get in touch with them more efficiently.
Get to know more about the people that actually process the payments to you within the ventures you do work for. This way, you will be able to build up a relationship with them, and over time they should become more reliable and, thus, more likely to pay you earlier.
Set clear payment terms
Ensure new customers read your freelance payment terms before any work starts, or arrangements are made. Your terms are what characterize your payment cycles and assist customers with getting what you expect and expect of them.
Terms can incorporate payment time periods, payment strategies, late payment fines, and notice periods. The terms can be distributed on your site and in records, for example, project proposition and deposit invoices.
By setting clear payment terms, your customers will be aware of your demands regarding payment straight away. If these terms don’t fit in with what they are looking for, they will look elsewhere and avoid wasting any of your time, which could be spent on another job.
Get payment upfront
Continuously get a forthright payment prior to working with new customers. Many freelancers request a 50% deposit before work starts, though a 25% or 30% forthright expense is additionally normal. A pre-work payment goes about as a litmus test by removing any corrupt customers who may treat paying as discretionary as opposed to compulsory.
You additionally keep a customer more drawn in with the task, as they have effectively put cash in your administrations and are bound to pay expeditiously once the work is finished. Basically, by receiving some form of payment upfront, you gain security with a new client, as well as some certainty that the remainder of the cash will follow through once work has been completed.
Demand attention with your invoice design
Appearance matters, particularly in business, and this incorporates the look and plan of your invoices. A dull high contrast invoice will look equivalent to each and every other one a customer sees. Then again, one that is vivid, particular, and appealing in appearance will stand out to them. This can assist customers with recollecting your invoice and bump them towards paying quickly.
If your invoice can stand out from the rest of them and get noticed right away, it will stand a better chance of being paid on time. This is so important for freelance workers in the fight to avoid late payment for any type of work being delivered.
Establish a memorable brand
Being memorable does not only apply to your invoices. It is also relevant to your general image, in any event, when you’ve finished the venture. Your brand image is everything your customer sees you be, from the work you bring out through to your personal and relational abilities, as well as your brand’s design. Ensure these are of top-notch quality.
Outshining the rest of the competition will guarantee repeat business and customers anxious to get your invoices paid on time so that you will work with them again.
Pick customers carefully
A few customers are going to be unreliable, and whatever quick payment frameworks and strategies you have set up, they will consistently pay late, or even worse, avoid paying you full stop. These are customers from hell and are best stayed away from at every possible opportunity. There are approaches to detect these inconvenient possibilities prior to consenting to deal with their undertaking. If you spot any red flags early on in the proceedings, get out while you still can.
At the point when you’re paid on time, you can zero in on conveying extraordinary work for customers instead of worrying about missing payments and stressing over finances.
Get paid quicker as a freelancer by consolidating these procedures and strategies into your business model. Freelance work is never easy, though it is often worth pursuing the freedom and endless possibilities it can present you with.
Unsecured funding could see you through.
If you continue to struggle for cash due to late payments, our unsecured funding methods may be the ticket you need. If you run a small business venture that takes card payments, you will likely qualify for a Merchant Cash Advance.
Our Business & Merchant Cash Advances are a quick and easy way to raise between £5,000 and £200,000 for your business.
Unlike a regular loan, there are no fixed weekly or monthly payments. You pay back a small percentage of your credit and debit card sales, which means that you only pay us back when you sell to your customers.
So, if you’re having a quiet month, your repayments automatically reduce, which helps you manage your cash flow. There is an all-inclusive cost that gets added to the cash advance, so there are no interest charges, APRs, or late fees.
- Apply in minutes
- 90% approval rate
- Approval within 24 hours
- No security or business plans required
- Flexible repayments based on your card sales
- One simple all-inclusive cost that never changes agreed on upfront.
You should now be well equipped to go out into the world and offer your freelance services, knowing that you’re going to be paid on time. You now know the tricks of the trade when it comes to receiving scheduled payments, so don’t go losing concentration while you are out there in the working world. If you look after your finances, they will surely look after you, too.