Whether or not you agree with the capitalist agenda that seems to have chewed western civilization to a pulp and left it as nothing more than a consumerist black hole is kind of irrelevant. Money makes the world go around. It is just a fact.
It is also why you need to get a little savvier when it comes to getting paid faster as a freelancer because there is nothing more annoying than a client who won’t cough up. Without money, your hopes and aspirations of becoming a success – maybe even changing your title to that of entrepreneur – simply cannot gain traction.
Luckily for you, this is not an impossible task. No. Not by any means whatsoever. In fact, just a few simple tweaks here and changes there could see you drastically improve your cash flow, allowing you to cover all those overheads you have looming.
So, without further ado, we bring to you our top tips on how to see cash land in your hand at rates you’ve never seen before. Enjoy.
Manners Maketh Man
That’s right. One of the most effective ways of getting paid quicker is being polite. Not only is it effective, it is about as cost effective as it comes.
Like our mom’s always said to us growing up, “manners cost nothing.” All it takes is a simple please and thank you attached to your invoice email and your chance of getting paid on time goes up by almost nine percent. Not only this but your brand image gets a boost too.
Use Clearer Terms
Too many freelancers and small businesses try to be as professional as possible, which means using industry terminology on their invoices. Yes. We’re talking about using the word ‘net’ instead of the more simple term ‘days’.
Yes, the phrase ‘net 30’ may look like you know what you are talking about, but it only works if the client you are sending it out to knows what you are talking about. That is why we recommend you are clearer with your terms and just state that you would like payment within 21 days. None of this ‘upon receipt’ stuff. Just give it to them straight.
Waiting Is The Only Option
We have all got those clients that are a little trickier and always pay late, sometimes seriously late. Well, instead of wasting valuable time chasing them up for payment, it could be worth exploring what the industry calls ‘accounts receivable factoring’, which you can read in depth at https://www.interstatecapital.com/accounts-receivable-factoring.
To put it to you as simply as possible, by going down this route you are able to convert your outstanding invoices into immediate cash for a small factoring fee. This will allow you to crack on with your business operations without having to wait for payment in order to continue. It’s a nice option to have.
Hit Them With Interest
You are a freelancer. This means you have the same rights as any other business, which includes charging your clients interest on any late payments. There is a great debate about this at http://www.davidairey.com/unpaid-invoices/ if you are interested. Of course, why shouldn’t you do this?
It is simply using one of the oldest approaches in the book – the carrot-and-stick approach – to ensure you get treated fairly. The way this works is pretty simple: they have an incentive to pay you faster than their other debtors. Sure, it isn’t the nicest way to do business, and it is hard to remain polite while simultaneously asking for interest, but needs must and all that.