4 Ways to Ensure you Get Paid!
So, you’ve been working for a client for about six months and they keep paying you late each month. You know it’s awkward, but you need to make sure that future payments are made on time and new clients don’t get into the same bad habit; so what do you do?
Know your Rights
Make sure that your client knows your terms and conditions right from the word go. If you both know your rights then there should be no misunderstandings. You have a right to be paid and your client has an obligation to you, to pay within a time frame.
According to Gov.uk, in Payment Obligations – Your right to be paid
‘Unless you agree a payment date, the customer must pay you within 30 days of getting your invoice or the goods or service.’
Start as you mean to go on
Be upfront with your client about costs and how you expect to be paid. An open and honest discussion can only be built on trust and will encourage trust.
In The Guardian‘s How to get customers to pay on time?
‘Before you start the work, make sure you have a written agreement on its scope and costs, and the procedure for getting paid.’
Ask for some form of payment in advance
The Balance make a suggestion in Ways to make sure customers and clients pay what they owe by asking,
‘worried that you won’t get paid for that sale or service? If it’s sensible in terms of the price of the goods or services, ask for a deposit or retainer up front.’
This is also backed up by 15 Proven ways to get clients to pay their bills on time by Inc.com,
‘Rather than charge a la carte rates for every project a client asks you to work on, each with different rates or fee schedules, develop a monthly retainer rate that covers everything in one simple payment.’
If you and your client and your clients have both discussed your expectations, yet they have still not paid you on time, then Crunch.co.uk, have some advice, in How to chase an unpaid invoice (without chasing your client away)
‘Write a letter or email to your client stating that, if your invoice isn’t paid within a certain number of days, you’ll charge them statutory interest, which is 8%, plus the Bank of England base rate for business-to-business transactions, which is currently 0.5%. So, the total statutory interest payable on the invoice would be 8.5%.’
I hope that this has been useful and I hope that you never get to the last stage where you are charging interest for late payments. No one wants to have those types of conversations.
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Thanks for reading and as ever take care.