Payment time

How to charge for late payment :: Freelance UK

Link in this article about legislation. I don't think the terms of your invoice has to be 30 days - more likely to be what is generally used. Especially when invoicing bigger companies where invoices are sent to the accounts department and money is then issued I would think that anything less than 30 days is unlikely to work.

And what would happen if the invoice was not paid in the 10 days you stipulated? Would you start hassling them and threatening to add interest and llate payment charges? Good way of not getting repeat business!

Yeah but some have taken 2 months to pay. Surely you have to draw the line and start hassling them at some point. Cheers for the link.

Totally agree with drawing the line somewhere but also need to make sure your follow up procedures are as tight as possible before getting heavy with people!

1 - Send the invoice and state in the covering email that you really would appreciate payment within the terms stated on the payment as you are a small business and cash flow is important in a company of your size.

2 - If payment not received within stated terms then politely resend the invoice and state that you have not yet seen the payment come in, remind them of the terms of the invoice and ask if they have the number of someone in accounts who you could chase it up with.

3 - Leave it a week or two, preferably having spoken to the accounts department, and chase again.

4 - If this does not work then I would go for reminding them of the late payment act and that if payment is not received within another x days then late payment penalties will be added to the outstanding invoice.

5 - If still no joy mention the small claims court and see what happens.

As I said in previous post you really have to weigh up repeat business, if the work is likely to be a one off then go in as hard as you like but you are unlikely to get referrals from them 🙂

Before getting hectic with them a quick credit check can show you how much cash they have and whether you should be scared or not.

If doing repeat business then hold back work until paid and consider finding clients that pay on time and dumping the late payers.

Late payers are a pain in the arse I have to agree. Only once have I had to threaten small claims and that did not work. As I had set up a site for this particular client and paid on their behalf then I simply changed all access passwords and told them that if I did not get paid then their email and website would be turned off. They paid me the next day. They have not used me for any more work and I would not work for them again if they begged me. Lots of nice, appreciative customers out there so keep hold of the good ones!

Yeah, got it. Thanks for the in depth reply. I find that actually going into the company and politely asking/waiting for the payment tends to work - i don't really like going down the legal route... not at this stage of business anyway.

Top tips.

I am a amateur photographer, who is looking at being a Freelance Photographer. I am eager to get my business started...and its great to know that i can pick up tips from this site.

thanks