Clients Don't Pay

How to Handle Non-Paying Clients?

If you stress out about non-paying clients then, you aren’t alone. Sixty-five percent of freelancers’ state that non-payment and late payment are very or somewhat concerning, according to Statista. The concern is far from unjustified. Across the board, freelancers report not receiving payments in a timely fashion.

If you can’t collect your payments, you can’t pay your bills. Fortunately, you don’t have to sit back and wait for clients to comply with the payment terms. You can take action to speed up the payment process and get the money you’ve earned.

1. Keep your billings consistent with work completed.

Send your client invoices on a consistent interval to protect yourself from doing too much work without client payment. If the client is late on an invoice, you can discontinue work without incurring too big a loss.  

2. Have an open and honest conversation with client.

We really love working with you. We are a little concerned because we haven’t received payment yet. Could you let us know what your plan is to get caught up on payment so we can keep the project moving forward.

This conversation should ideally be face to face. If you cannot do it face to face, then a phone call is the second choice.

Be Understanding.

3. Offer the client a payment plan.

I totally understand the challenges of a business. Would it be possible to structure a payment plan to get a copy up on this invoice?

Maybe we could spread out the payment over the next three months. Would that be helpful to you? Do you think you could make that work?

It is better to collect some of the money, than none of the money.

4. Discontinue current work immediately.

Give the client a grace period, but as soon as you feel like they are not going to pay anytime soon, you have to discontinue work.

5. Be patient with long term clients. Be bold with short term clients.

Clients you have worked for over a long period of time have earned some mercy for you. Give them time to pay.

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New clients that have problems paying could be the start of a disaster relationship. Be bold in collecting your money.

6. When your emotional losses outweigh financial losses, it is time to move on it.

You will have the clients that will not pay you. Every designer has been there. When the emotional damage of hanging on the aggravation of being stiffed become worse than the loss of money, it is time to let it go and move on with your business.

7. Some client will not pay you, no matter what you do.  

You can send them to collections or file a lawsuit. You can chase down payment to whatever degree you want, but some clients just won’t pay.

“The nice personal always has the upper hand in a legal situation.”

Rahul Sharma

So always be the good person in the situation. You can still be bold, but always be nice.

Conclusion

I have written this blog to make other freelancers’ life easy when they do contract of met client who don’t pay on time. If you have any suggestion that might be helpful. Let us know in the comment section.

Rahul Sharma

Rahul Sharma is a Founder of Logical IDEA and Bee Flirty. He is a Professional WP Developers, UX Designer, and Digital Marketing Expert. Previously, He Worked as a Digital Marketing Head for An eCommerce Startup. He Graduated with honors from Lovely Professional University with a Dual Degree in Information Technology.

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