Not been paid for Freelance work?
Not been paid for Freelance work?
It is a regular occurrence within the Freelance industry and this article tackles the sore subject what to do if you have not been paid for Freelance work.
There are many reasons as to why this may happen, and understanding them can help with the debt recovery process.
The client is delaying payment or refuses to pay altogether, resulting in overdue invoices.
The worst case is when you provide work for the client that they later claim they are not happy with.
Chasing payments takes time, and it is only right that the client pays on time once you are agreeing to the work.
We understand this and have provided some guidance within this article to help ensure that freelancers are paid on time.
Not been paid for Freelance work? Taking Positive Action
The starting point for any actions to recover what is owed is to examine the agreement you had at outset.
Hopefully, there was some form of contract on which you have provided your services before starting the work.
Normally within any terms of service, there are payment terms of 30 days that will provide the backbone of any recovery action therein.
If the terms of your invoice have now expired, go ahead and resend that invoice with a polite note.
Following up invoices is perfectly acceptable as any Freelancer that has not been paid should do.
You can include additional interest and even compensation under the Late Payment of Commercial Debts Act if it has been clearly stipulated.
Some choose not to do this for fear of offending the client
Whilst this can be understood, it can be used as a key motivator for payment.
This is especially true if it is included in your terms at outset.
It may be worth requesting read receipts to put on a file as proof of delivery.
This can come in very handy further down the line if the client claims they never received the invoice. Sounds ridiculous but believe it, this happens every day without fail.
If there is no response to this within seven days, then you are going to need to rethink your strategy.
Not Been Paid For Freelance Work – Solutions
You have now re-sent the invoice, attached a polite reminder and it has still not been paid.
If the instructing client is part of a company, send your invoice straight to its accounts section.
You might also choose to contact the line manager of the person you have been dealing with.
This is rarely the case but an option for some especially if you are dealing with a marketing or advertising agency.
You should highlight the completion date for the project undertaken and request prompt payment in full of what is owing.
If you have not been paid for freelance work by its due date it is likely you will be late for some legally binding financial obligations.
If all reasonable attempts at engagement are being ignored, a more direct approach may be necessary.
A phone call can be more effective and provide some clarity on matters.
Sending a special recorded delivery letter can help in this instance.
This can be trickier if the client is overseas as most countries do not have a postal system as efficient as the Royal Mail.
It is worth stating within your letter that recovery action will have to be taken if no payment is received.
This is the next logical step and also lets the client know you are serious about getting your money back.
Not Been Paid For Freelance Work – Instructing a Debt Collection Agency
Being self-employed and not been paid for freelance work can be a stressful situation.
This is especially true if it affects your cash flow.
Your attempts at a professional dialogue to seek a resolution have been exhausted so what are your options now?
Using a Professional Debt Collection Agency may be the best and least expensive option.
You should use an agency that is regulated by either the Financial Conduct Authority or Credit Services Association.
As always, cheap is not cheerful and choosing a debt collection agency to work with is pretty much the same with anything.
Less than 1% of cases we work on require any form of legal action through a small claims court.
We provide a low cost fixed fee service used by even a large number of legal firms to recoup unpaid fees.
County court action can be very expensive and all claims are now subject to pre-action protocols. These must be followed or it can render the claim null and void.
We have provided Debt Collection services for Freelancers across the UK since 2005.
We are proud to support the UK’s freelance communities with our professional debt collection services.
If you have not been paid for Freelance work then contact our friendly new business team today.
We provide Local, Nationwide and International Debt Collection services.
Contact us today and take the first step to the collection of your Debt.