How long does it generally take for your clients to pay you? And, maybe more crucially, how many customers pay late or not at all? This, however, does not have to be the case. As a full-time freelancer, you must ensure that your cash flow is consistent. Otherwise, you risk falling behind on your expenses and running into financial difficulties.
This tutorial will show you how to increase your chances of receiving payment on schedule (and what to do when all else fails). Let’s get started.
Screen Clients Before You Commit
A client contacts you via email and requests your services. You’re eager to welcome them aboard and begin working on their project. But don’t. There is homework to be completed ahead of time. It could mean the difference between working on a dream project and dealing with a nightmare client if you do your homework. Well-funded companies that regard freelancers as valued experts are ideal clients. You may also seek out other freelancers who have previously worked with the company and inquire about their experiences. LinkedIn is a great place to look for people who have worked for or are still working for your potential clients.
Never Begin without a Contract
It’s time to put things in writing after you’ve verified the client. You’ll lessen the chances of disagreements over pricing, deadlines, and scope of work by doing so. It’s vital to create the groundwork for each project so that everyone is on the same page before work begins. A contract’s goal is to safeguard both parties. It’s a mutual agreement that demonstrates your freelance professionalism. As a result, it establishes the correct tone and creates a positive first impression for potential customers.
Be Punctual with Your Due Dates
To put it another way, don’t give your customers an excuse to delay payment. It’s all too tempting to get carried away with your speed and capacity. To win over a new client, freelancers frequently agree to rapid turnarounds and/or high output within a short timeframe. Do not attempt this. Putting oneself in a difficult situation of completing tasks on time while keeping quality can only hinder your output. Make sure to keep track of your time so that your productivity doesn’t decrease. Keep track of how long projects take to finish so you can agree on the optimal turnaround times. Then make sure you keep to it so your money isn’t delayed.
Send Invoices Immediately Upon Completion
It’s simple: the sooner you send your invoice, the more likely you are to receive payment. So don’t linger once a thing is over. When you’re finished, send in your invoice for payment. Because digital engagements are the norm between freelancers and customers, accepting online payments makes sense. It not only provides ease for your customers, but it also allows for faster payment. You may send invoices electronically and connect your checking and online payment portal accounts to make quick payments with FlogApp.
Set Up a Follow-Up Strategy
An invoice is not always followed by prompt payment. Clients sometimes become so preoccupied with running a business that they forget about pending work. You should establish a strategy that includes sending payment reminder emails to keep them on their toes. You can, for example, send an email after three days and then another after one week. You should keep sending reminders every few days after that. When you use an automation tool, it’s much easier to stick to this technique.
Keep Money Flowing as a Freelancer
You went freelancing because you wanted more flexibility. This might be the ability to work from anywhere. You have complete control over which projects you work on. And/or the flexibility to work your way. However, when you’re responsible for your own marketing, administration, and financing, this is difficult to achieve.
Even if you’ve grown accustomed to wearing many hats, no freelancer should have to deal with debt collection. It takes time away from tasks that generate income. As a result, it’s critical to put up a system that ensures your company receives payments on time.
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