Freelance late payment fee is something that you have to grow accustomed to as a freelancer. Some clients will never pay on time. Some clients will take off with your money and never get in touch with you to explain what happened. This is just the nature of the beast and shows why you should spend time evaluating your options thoroughly before agreeing to offer any freelance service to just about any customer you find. Just like you take time finding the best employer to work for, you should exercise a similar level of caution with your freelance customers.
Effect on credit scores
Paying bills late damages credit scores. Unfortunately, many people don't think of this when dealing with freelancers. This is because they probably imagine freelancers won't report them to credit rating institutions. According to Credit Karma Inc, late payments are capable of affecting your credit score, thus the more reason for discouraging clients from making such mistakes. For this reason, train your clients to avoid making late payments as they might transfer this habit in other areas of their lives and suffer the consequences.
In fact, good freelancers encourage their clients to pay immediately they receive invoices. This works when you let the client know you expect payment immediately after sending an invoice. You ought to include this condition or stipulation when signing the contract with your clients. Make the situation easier for your clients by informing them in advance when you will be sending invoices. This way, the clients can set money aside to clear your bill and avoid making late payments. The result is they don't have freelance late payment fee to worry about.
Paying online is a good way of avoiding the late payment fees. This is because the approach eliminates the likelihood of payments reaching the intended person late. Online payments reach the person you send them to immediately. Checks get held up at the post office all the time. The customer ends up paying for a mistake that is not of his own making. Automating the bill payments is one of the most effective strategies you will ever employ in your freelancing career. According to NASDAQ, the preferred methods of making online payments are:
Lastly, don't forget to send reminders to clients who can't pay immediately after receiving invoices. A customer who makes this mistake once is worth forgiving. However, one who repeatedly makes this mistake is worth handling a bit differently and with more aggression. Do not forget that your goal is to encourage customers to stop paying late and attracting late payment fees. Customers ought to understand that you also need the money to continue running the business successfully and serve them exceptionally well.