Debt Collection for Freelancers in the UK
Debt Collection for Freelancers in the UK
Following a study performed by the Office of National Statistics (ONS) in March 2017, there were over 4.7 million people registered as self-employed.
This figure accounts for roughly 15% of the entire UK workforce.
With this in mind, it is fair to say that freelancing has fast become an attractive and viable working option to many. This is because of the flexibility it affords, as well as the success it can bring to those who work to earn it.
Freelancers are like big and small businesses in many ways. One of the things they share with other businesses is the possibility of non-paying clients.
Regardless of the nature of their work or the size of their enterprise, those who are self-employed still need a viable option for recovering fees that they are owed.
In some ways, a self-employed worker needs help even more than a larger business. This is because the effects of not being paid can be felt that much more with an individual than with a larger organisation.
Businesses with employees often have the safety net of many clients or a healthy bank balance. Freelancers and those who are self-employed may not have such luxuries.
It is a fact that if enough clients decide not to pay a freelancer or dispute a payment, that person’s income effectively stops dead.
Multi-Skilled Debt Collection for Freelancers
Being a freelancer affords a great deal of flexibility. You can work according to your own preferences, and all the decisions are yours to make.
As a freelancer, you are usually 100% of the business.
You are the CEO, the sales force, the workforce and the credit control department.
If a client suddenly decides not to pay you, it is down to you to resolve.
If you do not tackle the problem of late or non-payers, no one is going to do it for you…
…or are they?
For freelancers, it can often become very easy to take it personally when somebody owes you money
It is only human to feel frustrated and disappointed when you are not paid for goods or services which you have provided in good faith.
This in itself can cause stress and becomes anti-productive in terms of time spent chasing somebody who is trying to avoid payment.
Many freelancers put many measures into place to maximise clarity and minimise late payment.
These measures include methods such as regular reminders and prominent payment terms.
If you have done this and you are still not getting anywhere with a client, then it is time to talk to a professional in the collections sector.
Professional and Ethical Debt Collection for Freelancers
When faced with a client who has not paid them, many freelancers are unsure of where to go for help.
The most obvious route to many is the court system. However, it is well known that solicitor’s fees are extremely high.
As well as this, the freelancer will need to devote a large part of their time to give this matter its proper due attention.
For the vast majority of freelancers, this will not be an option. As such, it is often tempting to simply ‘write off’ the debt.
This should never be an option, and it is critical for freelancers across the UK to be aware that there is a better choice.
Regardless of your working circumstances, a modern Private debt collection Agency is the best choice for collecting debt and unpaid fees.
Professional debt collection agencies provide a service that removes all stress and headaches associated with the recovery of fees.
You can use such a firm as an extension of your own credit control process. This could be triggered once a client does not look as if they have any intention of paying. At this point, that client becomes a debtor.
One of the key points of hesitation that a freelancer may do is to be concerned about the methods used to recover funds.
This is understandable, as it is important to remember that whilst the client has not paid you this time, this does not mean that future business opportunities with them no longer exist.
A good debt collection agency such as Frontline Collections will recover your funds in an ethical and lawful way. They are acting on your behalf, so they have no interest in causing you problems with your reputation
Professionalism is valued above all else, and the collections agents will operate in such a way that will resolve the matter amicably.
This is where performing careful research and due diligence pays off. This can take time, but it is worth it.
If a poor debt collection agency is chosen to recover your debt, then they may use heavy-handed tactics which could permanently destroy business relationships with clients.
Debt collection agencies typically work on a performance-related basis.
This means that they will deduct a commission of between 8-25% of the sum owed when monies are collected.
The percentage can often be a sliding scale depending on the amount owing.
Usually, the smaller the amount which needs collecting, the higher the percentage.
This is often payable in addition to a small instruction fee which can be added to the principal sum.
Working with a professional debt collection agency also acts as a safety net to catch the revenue you might otherwise miss out on if you do not pursue what is owed to you.
Debt Collection for Freelancers – In Summary
One of the working sectors most vulnerable to debtors is the freelancer industry.
If they are not paid for work they have performed for their clients, then it could mean not having enough money to live on.
Don’t become a statistic. Talk to a friendly professional debt collection agency and protect your future today.
Frontline Collections specialise in acting on behalf of hundreds of freelancers across the United Kingdom and the World.
From journalists to photographers to designers, Frontline Collections have the experience and the know-how to recover your money as quickly and as professionally as possible.
We can deal with any freelancing matter and along with our sister company Federal Management who are Business Debt Collection specialists, we form the most formidable Debt Collection Agency alliance in the United Kingdom.
Even if your debtor needs to be traced or is located overseas, we have a full 360-degree Debt Collection service for Freelancers to ensure they get paid what they are owed.