Why clients fail to pay invoices on time
Missed or late payments can occur even if you’ve got a good relationship with a client. You may have been late to send your invoice, the client may have missed your email, or it’s just been forgotten about somewhere in the payment process. This is where the best invoicing tools and apps can save you time and money with automated sending and reminders.
If your invoicing tool shows the request has been received and viewed, then there may be another reason for non-payment. In some cases, it may be a lack of motivation once everything has been delivered. Or they may be unhappy with the work, or feel it demonstrates some power over you.
Lastly, in some cases the client may be intentionally avoiding payment because they simply can’t or won’t settle their bills. In which case, they will often fail to reply to emails and ‘ghost’ you in the hope you’ll give up chasing the invoice.
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Minimise the risk of late payments in your contracts and invoices
It won’t help you chase a current missed payment, but you can minimise the risk of future late payments by researching potential clients, paying attention to any red flags, and utilising your contracts and invoices to ensure everything is clearly stated and agreed. IPSE has also released the Late Payment Index, collating Government data to show you which business are performing well, or not, with regards to their payment practices. This may help you with your due dilligence before signing any contract for work.
Before you start any work, you should ensure you have a signed contract, including payment terms and any deliverables required before invoices are sent or settled. This makes it clear what responsibilities you need to meet in order to receive your fee, and prevents the client adding extra tasks, changing the scope of a project, or denying any verbal agreement. It also prevents any honest misunderstandings between what you’re providing, and what the client expects for their money.
IPSE members can access a clear Statement of Work template which can quickly and easily be amended to suit your needs. You also get free access to legal and contract helplines, and Standard or Plus members also get contract failure cover.
Where to find support and advice
In addition to the support and advice on contracts and legal matters offered as part of IPSE membership, it’s also possible to find some basic legal advice through the Citizens Advice Bureau.
You can also get support regarding contracts and payments by joining any applicable union, such as the National Union of Journalists (NUJ), or The Broadcasting, Entertainment, Communications and Theatre Union (Bectu).
If a client feels they can ignore payments to a lone freelancer, they will think again when you’ve got professional organisations backing you. The alternative is to look at legal representation, but for smaller invoices and amounts this may cost more than it’s worth to recover your debt.
And don’t feel like you have to go through the stress of chasing bad clients on your own. It’s sadly a common experience, so you’ll get plenty of support and advice via the IPSE Community Forum, or groups like Creative Freelancers UK on Facebook. Obviously, it’s a good idea not to identify the client in question, but you can describe the general circumstances and find out what other freelancers have done in similar situations. Just make sure you stick to documented facts, as falsely claiming a company is insolvent, for example, will leave you open to a defamation case.
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