Ask for a late fee - Deepstash

Ask for a late fee

Instead of encouraging early payments with a discount, use a late fee for creating an incentive. Clients who intend to pay on time won't mind signing a contract with a late fee.

How to include late payments in your contract:

  • The amount should not exceed 1.5% of the project fee unless you can justify it.
  • Set a due date on your invoice.
  • If a client does not pay, send an invoice reflecting the change in the final sum.

6 STASHED

1 LIKE

MORE IDEAS FROM THEARTICLE

You can use online signature software to sign your contract.

  • The quicker the document is signed, the faster clients can make an upfront payment for your services.
  • Online signature software often connects with Apple Pay or other payment services. After clients sign a contract, they are automatically redirected to the payment gateway.

7 STASHED

Getting paid on time

Chasing clients for late payments can get uncomfortable. It can also have a huge impact on freelancers' cash flow, as freelancers work from project to project.

Some tips can help to ensure getting paid faster without engaging in awkward conversations with your clients.

6 STASHED

1 LIKE

As a subcontractor, you may have expenses that your clients will reimburse after you finish the project, such as a freelance editor hiring a graphic designer for visual content or a proofreader to improve on its grammar. Expense automation solutions can ensure that you get paid faster.

It works like this:

  • You spend the money on a product or service
  • Then log it in the expense automation tool and submit a copy of a receipt.
  • The financial controller is notified and can proceed with reimbursement.

7 STASHED

Some customers will intentionally delay payments indefinitely, but others just forget.

Some invoicing tools can help to automate payment reminders. You could also write a personalised reminder message when creating an invoice and define when it should be sent to your clients.

7 STASHED

By building your brand, you can get more gigs and become selective in who you work with. As a result, you can stand out and win more respect.

With a solid personal brand, you can stop selling your time and invest in more scalable ways of earning money, such as launching an online course or blogging.

6 STASHED

Try to prevent late payments by examining a customer's profile and avoid working with clients similar to that one. If a new client is too similar to that client profile, it's better to pass on such projects.

If you have a personal webpage or social media profile, select and add video testimonials of your ideal customers, thereby turning away companies that you don't consider ideal.

7 STASHED

Deepstash helps you become inspired, wiser and productive, through bite-sized ideas from the best articles, books and videos out there.

GET THE APP:

RELATED IDEAS

Promises Of Clients💲

Every freelancer has heard the pitch from clients about “no money now, but there will be later”, “help start my business and you’ll be my ‘go-to’ person in the future”, or “when things get going, you can charge more and make up your lost fees”.

These promises are of course lies! Every business has money. The trick is, getting them to part with it. Here are some handy ways of creative billing and other methods for turning a cheapskate into a great client… who pays your invoice!

11 STASHED

3 LIKES

Accounting software is a program that helps to manage a company's financial transactions. The accounting software you use can help track critical financial data in your business, keep track of your taxes, and pay your employees on time.

Freelancers and small businesses can use a generic solution, while enterprise organisations need a more complex system.

2 STASHED

Freelance writing challenges

Freelancers face some universal issues such as getting paid on time, navigating taxes and managing a career.

One of the biggest challenges for freelance writers are contracts and terms of work. One missing piece for many freelancers is what a standard contract can and should look like.

2 STASHED