Freelancers are often overworked and underpaid because they lack all the support a fully fledged business will have in dealing with the financial aspects of a business.
The freelancer will not only be doing the work, they will also be required to be their operation’s collection department, accountant and salesperson all in one. This of course creates a whole range of contradictions.
While a business owner with employees can simply delegate tasks to such as debt recovery to their accounts department or collections, the freelancer will be personally involved in the process. This can make life difficult if the client relationship is disrupted due to disputes over payments.
One way freelancers can avoid this is to very clearly set out terms of business right from the start of the business relationship. This should leave both parties in no doubt about payment dates if a retainer is the method of payment and also more general agreement on charges and the consequences of late payment.
More than one method of payment should also be offered to give clients a choice of how to make payments. Invoices should be clear and accurate and any disputes over work or what is contained in the invoice should be dealt with at the earliest opportunity to avoid disputes over payment getting out of hand.
If a client still refuses to pay, then hire a debt recovery agency to do the work for you. It will save you a lot of time so that you can get on with your work and hopefully winning better clients in the future.