Get paid on time
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There’s nothing more irritating than winning an amazing project, killing it on the work, issuing your invoice and then...silence. Being paid on time is a simple courtesy that your clients owe you, but the good news is we’ve got some simple tips to make sure the cash arrives in your account when it’s supposed to.
01: Terms and conditions
After you’ve got the green light and quote has been signed off, we’d strongly recommend you send over your terms and conditions to the client. This sets out your requirements for payment and other details such as the point 2...
02: Deposits
It’s standard practice to ask for a deposit, so don’t be afraid to request anywhere between 10 and 50% upfront before you start work, and definitely don’t release the final product until you’ve been paid in full. When the initial deposit has been paid, you’re a step closer to getting paid on time and know that if there are any issues with the final invoice, you’ll have some extra financial security.
03: Invoice promptly
This is a sure fire way to hold up your payment. If you don’t issue the invoice ASAP, don’t expect to get paid ASAP!
04: Due date
This is fairly obvious (but often missed!) make sure you include a due date on your invoice. This should be within the term agreed prior to the project with your client.
05: Chasing
There’s an art to effectively chasing an invoice. Your tone should be clear and confident, but polite, not rude. Feel free to take inspiration from our suggested chasers below!
So in a nutshell your formula is…
Greeting
Question - friendly and informal, a quick catch up or mention of something previously discussed
Show your appreciation again for the work
State when your invoice was due / how many days overdue it now is
Ask for an update on when it will be paid
Sign off
On the whole, i’d advise against ever apologising for chasing. Never give them an extension unless they clearly come back and ask for one and be firm but fair.
If your email reads:
“I’m so sorry to chase you but my invoice was due to be paid yesterday. I know it’s only a day late but it would be nice if that could be paid. Don’t worry if not though, anytime in the next week is fine.”
This undermines your due date and undervalues your work. Back yourself and get paid on time. Some company policy is actually not to even pay an invoice unless it’s been chased, so it’s worth putting a note in your diary on the date it’s due to remind yourself to chase it! Usually just one chase does the job, but if not, a firmer slightly less friendly variant on the above email is your next step.
If you have the contact details of the finance / accounts person, it’s always best to chase them directly with your client contact on copy, just to make sure it doesn’t get lost in anybody’s inbox.
If you’ve emailed twice and still nothing...it’s time to pick up the phone. Your first few invoice chasing calls might feel awkward, but at the end of the day, it is 10x more effective in so many scenarios to just have a chat.
06: Retainers
If you’re doing regular hours for a client every month, you may want to suggest a retainer and direct debit model. You’ll still need to invoice them every month but if you’re being paid on direct debit it’s highly unlikely you’ll ever not be paid on time.
07: Ditch late payers
If you’ve got clients who repeatedly mess you around on payment and you’re in the financial position to - drop them! Don’t be afraid to turn a client down if you do not enjoy working with someone. The time you spend chasing them or stressing about an invoice, could be spent far more productively elsewhere.
08: Late payment fees
Again, standard practice in T&Cs. If your client hasn’t paid your invoice within the agreed term you’re entitled to add interest. More information on that here.
And there you have it! Hopefully these tips will keep you paid on time and focusing on what you do best, creating!
