Late payments are usually major issues for freelancers, and no matter what the terms of the agreement are, most of them will experience late payments from clients at one point or the other. So the reason why freelancers should issue late fees is , that even as I am writing this, I am owed over £3000 from my clients.
Well, I can certainly live with a few invoices getting delayed, but what happens if the sum gets even bigger?
This would significantly derail my plans for settling my bills and other money-related responsibilities.
Of course, we understand that most freelancers out there are in stressful situations where they keep trying to keep track of their clients and following up on the payments, and this shouldn’t be the case at all.
A client is supposed to pay you on time, immediately work is done, and if they may have some disputes about the payment, this should be settled as soon as possible, and payment remitted once it is done.
So, if this is the “norm,” then what is the solution?
Well, as a freelancer, one of the options available to you would be to apply some strict late payment fees for all late invoices or ensure that you take full payment upfront.
I know that you think this is easier said than done, and you really do not want to charge your clients a fee for late payments since you do not want to lose them, and again, which client will agree to an upfront payment before work is delivered? Probably none, or very few.
But, if you have a client who consistently pays late, I guess it’s about time you re-evaluated this relationship as you are not benefiting from it, and it essentially costs you money.
The road less travelled – charging late fees for your clients, is probably the best option for you.
So, let’s get into it.