Deciding to become a freelancer can be one of the most exciting and liberating choices you’ll ever make. That’s partially because going freelance means you now control your own schedule, lifestyle, and cash flow.
But for new freelancers who are used to an automatic paycheck every two weeks, freelancing also presents a unique array of challenges.
Not the least of which is getting your clients to pay you on-time.
After working with thousands of independent workers for over a decade, I’ve met my fair share of freelancers who have had to chase down past-due invoices and practically beg to be paid.
In fact, a recent survey revealed 54% of freelance and gig workers say their clients take far longer to pay than they should.
If you’re one of the millions of freelancers who’s tired of not getting paid on time, you can take action.
So while getting more organized can improve your client payment process, and fighting back against poor payment practices may help, your best opportunity is to first understand exactly why your clients don’t pay their invoices on time.
If you can understand why, you can formulate a plan to recover your unpaid fees.
That’s why, in today’s article, I’ll reveal some of the most common reasons clients aren’t paying your invoices on time (along with a few solutions you can try immediately).
Let’s dive in.
Reason #1: Your client is deliberately avoiding payment
I’m going to get the most annoying and difficult reason out of the way first:
Sometimes clients just don’t want to pay you.
They may be short on cash at the moment. They might be dissatisfied with the work you provided them. Or they might have changed their mind on the project altogether.
How to begin solving this issue
Clients who are deliberately avoiding your calls, ignoring your emails, and doing their best to keep you away are the most difficult non-payers to work with.
Start by attempting to identify why they’re keeping their distance.
It’s possible they’re dissatisfied with your work and too embarrassed to give honest feedback at this stage, opting instead to just ignore you.
If you sense this may be the case with your client, reach out in a genuine attempt to make things right and complete the project to their satisfaction. This may require additional budget in some cases, or you may be able to improve the result without further cost and get paid quickly.
If you sense your client is low on cash or doesn’t have the funds to pay you for whatever reason, consider working with them on a payment plan. You can allow them to pay their bill over time with no interest or you may choose to charge them an additional fee for paying over time instead of all-at-once.
It’s important to do your best to keep the situation from becoming hostile or uncivil. Don’t be rude. Don’t try to intimidate your client. And don’t threaten legal action… at least not yet.
Reason #2: Your client isn’t responsible for paying invoices at their company
The next reason is very obvious if you know how big business works.
What many freelancers don’t realize is their client—meaning the direct contact you have at the company—may not be the one to actually process your invoice.
Depending on the size of the company, oftentimes freelance invoices will be processed through an accounts payable department (part of Accounting) at the company.
If you’re working with a very large company (or even a small division of a large company) the accounts payable team may not even work in the same building as your client contact.
Suggestions for solving this problem
Above all, it’s important to understand exactly how your clients work with invoices.
Then, when you get ready to send an invoice to your client, consider asking them who will be processing your payment and if you can follow-up with them directly.
If you’ve already sent an invoice and it’s “lost” somewhere in the accounting department, ask your contact to put you in touch with the person responsible for processing your invoices so you can check up on it directly.
Keep in mind, if you do make contact with the person in the accounting department who will routinely process your invoices, you want to make friends with this person—not enemies.
Go above and beyond to show gratitude for their efforts and help them look forward to talking to you on the phone or via email—instead of dreading it.
Ask them if they’d prefer you send your invoices via email, post mail, fax (yes, some companies still use this) or some other way. Offer to make your invoices more clear or add any other important information they may need.
If you make their lives better, they’re more likely to process your payments in a timely manner.
Reason #3: Your client forgot to pay… and just keeps forgetting
The truth is, your clients are busy people. That’s not to make excuses for your clients not paying your invoices on time, but simply to help you see that, while getting your invoices paid may be a #1 priority for your business, it’s not even in the top 10 for your client’s business.
They have a million other things to worry about.
That’s why one of the most common reasons freelancers don’t get paid on time is because their client keeps forgetting to process the invoice.
This is particularly common in very small businesses where your client is in charge of processing invoices, but also does the daily marketing, fulfills orders, operates customer service and basically runs the whole company.
These kinds of clients are notorious for letting an invoice sit on their desk or in their email inbox for months without getting paid.
How to solve this common issue
Luckily, there are a few simple things you can do that will improve your chances of not being forgotten.
For starters, you should make your invoice incredibly easy and simple to pay.
That means, instead of creating a PDF invoice in Google Sheets, try using some sort of invoice software or PayPal which includes a “Pay Now” button directly on your invoice.
That way, your client doesn’t have to print the invoice, write a check, put it in an envelope, and mail it out. They can just pay within a couple clicks.
You should also be consistent in your invoicing. Using an invoice template will give your clients a consistent experience so they don’t have to re-learn how to read and process your invoice every time you send it.
Popular freelancer invoicing apps like Freshbooks or AND.CO can also send automated follow-up emails to your clients so you don’t have to waste lots of precious time constantly following up with them.
Reason #4: Your client didn’t understand the terms of the invoice (or you didn’t)
Finally, one of the most frustrating reasons your client doesn’t pay their invoices on time may come down to a misunderstanding of simple invoicing terms.
You may have assumed your invoice would be processed immediately once your client received it. And they may have assumed they had a 30- or 90-day window to make the payment.
These miscommunications can cause big headaches for independent workers who are fighting against the feast or famine cycle of freelancing.
How to clear up these miscommunications
To resolve these miscommunication issues, you should get a clear understanding of just how invoices work.
Every invoice should include payment terms somewhere. These are the terms to which you and your client have agreed to exchange money. Ideally, these terms should be outlined when you write your proposal or in early client meetings.
If you failed to clarify these terms early on in your conversations, then do so when you send your invoice.
You should also ensure you clearly understand possible invoice payment terms.
For example, “Net 30” (a common invoice payment term) does NOT mean the same thing as “Due in 30 days” and can leave you without payment for much longer than you expected if you don’t understand the key differences.
The biggest factor in whether you get paid on time or not…
Everything I’ve shared today is based on years of experience coaching freelancers through getting paid and building predictable revenue into their businesses.
But there’s one underlying factor that’s present in almost every single unpaid invoice issue I’ve experienced:
Client communication.
If you’ve done a good job and communicated well with your client throughout the entire project process, then you’re far more likely to get paid on time at the end of every project.
If you’ve been unclear, timid, or wishy-washy on what’s expected in terms of payment, then you’re more likely to face payment problems.
Talking about money can be awkward—particularly for new freelancers. Learning to overcome the awkwardness and realize money is simply an exchange of value between one business and your own is the first step in taking control of getting paid on time.
As you get more comfortable with money and more experienced in your work, you’ll begin to gravitate toward clients who will pay you what you deserve in the time-frame you require.
