Freelance Unpaid Invoice
Freelance Unpaid Invoice
Do you have a freelance unpaid invoice that needs collecting? Are you unsure of the best route to take to get this paid?
Working for yourself can occasionally be problematic, so when you have customers that are not paying you or leaving invoices unpaid, this can make things even worse.
This situation can leave you feeling distressed or annoyed, which can be fuelled even more by the lack of employment legislation for scenarios such as these.
As a freelancer or self-employed contractor, getting paid for the work you have carried out is vital. If you are not paid, this can have serious repercussions on your cash flow and you could face even more financial difficulties down the line.
Maintaining a healthy cash flow is crucial when you are a freelancer, so combatting unpaid invoices head-on is essential to maintaining a healthy work-life.
It is important to remember that, however uncomfortable and sensitive the situation, you are not alone in this. The late payment or non-payment of freelance invoices is, unfortunately, a common issue for many workers in the UK.
In a report that was conducted by YunoJuno, around 55% of freelancers have done work that they have not been paid for. This is a shocking discovery that prompts the need for change, ensuring less and fewer freelancers experience this.
Making the right choice when planning the recovery of your freelance unpaid invoice is more important than you may believe. Making the wrong decision could be the difference between getting paid and losing even more money.
In this article, our team of expert Private Debt Collectors have put together guidance on the best ways to get your invoices paid and how to avoid this in the future.
Expert Tips For Dealing With A Freelance Unpaid Invoice
If you find yourself in the position above, where you have a freelance invoice that has gone unpaid, here are some steps to mitigate the situation.
These should also provide relief in the future should this potential scenario happen again.
Being owed money by a customer can leave you feeling extremely stressed and may even take a toll on your mental health. The sustainability of your mental health, as well as your business, is very important, so in situations like this, it is important to remember to stay calm.
This is recommended as the customer may have genuinely forgotten to pay your invoice and will eventually pay if they are chased.
If you choose to act irrationally, this may result in no further business opportunities with the customer, and you may end up getting annoyed for no valid reason.
COMMUNICATE WITH YOUR CUSTOMER
The first thing you should do when you are met with a Freelance unpaid invoice is to get in contact with your customer. Letting them know that they have not paid their invoices is only natural and completely appropriate.
Communicating with your customer about a freelance unpaid invoice can be done in several ways, including:
- Calling the customer to chase payment.
- Sending a letter reminding them of how much is owed and when it was due.
- Sending a statement of outstanding costs (this should be sent if the top two fail).
It is extremely vital that you stay professional and calm within your communication as if you are not careful you may risk jeopardising the relationship between yourself and your customer.
AGREE ON PAYMENT TERMS PRIOR TO PROVIDING GOODS OR SERVICES
When you are instructed by a customer to carry out work for them, it should be common practice to agree on payment terms and sign contracts beforehand.
Having a contract that is signed by both parties and outlines payment terms will provide you with a legally binding document.
Payment Terms are used to ensure that a payment date is agreed upon, meaning the customer will know what date to pay you on. These are usually paid on the 30th or 60th day after the work has been carried out.
In the business-to-business world, it is more common for credit-control teams to work on payment terms. However, there is nothing to say this cannot be applied in the private sector for Freelancers or Self-employed individuals.
INSTRUCT A DEBT COLLECTION AGENCY
If you have tried the above points and are still experiencing freelance unpaid invoices, the recommended solution is to instruct a Private Debt Collection Agency.
Over recent years, Debt Collection Agencies have become the normal method for the recovery of unpaid invoices, rather than using outdated methods such as Solicitors.
The main objective of a professional and pragmatic agency is to maximise the potential of a successful recovery whilst minimising cost for you.
Putting your debt or unpaid invoice into the hands of a professional will allow you to focus on important tasks, such as growing your business by taking on more work.
Using A Debt Collection Agency To Collect A Freelance Unpaid Invoice
At Frontline Collections, we recover money every single day for freelancers and self-employed individuals. Our team of Debt Collectors are expertly trained to deal with situations where a freelance unpaid invoice may occur.
Since 2005, we have provided the UK’s No1 Debt Collection solution for Private Individuals, working across a wide range of sectors.
As part of the service that we provide, we offer:
- High Collection rates and Low Commission rates
- 90% Recovery rate on undisputed Debts
- Members of the Credit Services Association
- Online Access to Accounts for Multiple Debit instructions
- “Gold Preferred Supplier” With The Independent Schools Association
- International Debt Collection Team to collect Debts in the EU, USA & Overseas
We will provide you with the most hassle-free way to getting your unpaid invoices back to you, whilst not jeopardising the relationship between you and your customer.
Get in contact with our New Business Team today as to not prolong the collection of the money that is owed to you.