As a freelancer, you’re forced to wear a lot of hats. You have to market yourself, create and sell your offers, post on social media, balance your books, pay your taxes, and that’s only beginning to scratch the surface of all your responsibilities.
Of all the possible things you have to do as a freelancer, chasing down client payments shouldn’t be one of them.
Whether you’re a designer, copywriter, coach, or consultant, dealing with overdue invoices can be one of the most frustrating (and uncomfortable) parts of running your business. But it doesn’t have to be that way.
By putting clear payment terms, smart policies, and legal protections in place from the start, you can reduce client drama and protect your income.
In this blog post, I’m breaking down how to get paid on time as a freelancer and what to do when clients don’t follow through, including a resource that takes the guesswork out of sending overdue payment reminders!
Because again, you already have a lot on your plate and carving out time to craft a “hey, ummm it’s time to pay me email” shouldn’t be something that needs to fall on your to-do list consistently.
Let’s get into it. 👇🏼
How To Get Paid On Time as a Freelancer
Set Clear Payment Terms from the Start
As a lawyer that works with small business owners, my BIGGEST piece of advice for almost everything is this: put it in writing from the very beginning. ✍🏼
If you want to get paid on time as a freelancer, your clients need to have a very clear understanding of what “on time” means. Spell it out in plain language and go over it during your onboarding process so there’s no confusion.
Your freelance contract payment terms should include things like when invoices will be sent (and for how much), when (and how) payments are due, and what happens if payments are late (late fees, paused work, etc.).
The clearer you are upfront, the fewer issues you’ll face down the line!
Communicate Expectations Clearly
Having a contract is the first step, but also having a conversation to reiterate your payment terms is important too!
You can do this during an onboarding or kickoff call where you briefly explain your policies, make sure clients understand when invoices will be sent, how they can pay, and what to do if a payment is late. And honestly, conversations like this don’t have to feel awkward or uncomfortable!
You can approach them with a professional tone that conveys you simply want to reduce miscommunication. Most clients will view this as completely normal without making a big fuss.
In addition to your contract and initial conversation, you can also include your payment terms in a one-pager or in the FAQ section of your client's welcome packet so they can always reference it later if needed.
These small touches can help avoid awkward situations and make it easier to enforce your policies down the road.
Implement a Structured Payment Policy
As a freelancer, your payment policies might change depending on who you’re working with, which is totally fine! But if that’s the case, it’s important to create a consistent system so you can keep things as streamlined as possible.
For example, setting a standard payment policy for your business and sticking to it can be wise! This might include things like:
- Requiring 50% up front before starting work
- Invoicing on specific days of the month
- Adding an automatic late fee after a certain number of days
Additionally, using invoicing software like HoneyBook or Dubsado can help automate parts of your payment process, like payment reminders, late fee tracking, and even recurring invoice options.
Overall, a structured payment policy helps set expectations and shows clients you run a professional, organized business.
Address Overdue Payments Professionally
Even with the best systems in place, there may come a time when a client doesn’t pay on time. When that happens, it’s important to follow up quickly and professionally and that’s where a demand letter for unpaid invoices can come in handy!
And I know what you might be thinking: “demand letter” sounds so dramatic and… demanding. 😅
But in reality, a demand letter is simply a formal notice requesting payment and outlining the consequences of non-payment. It’s a step above a friendly reminder that shows the client you’re serious, without immediately jumping to legal action.
Essentially, late payment demand letters can help you recover unpaid invoices faster by escalating the tone appropriately.
What To Include in Your Late Payment Demand Letters
If you’ve ever hesitated to follow up on a late invoice because you didn’t know what to say or didn’t want to come across as aggressive, I get it. Most of us business owners want to come off as the cool and fun friend, but the reality is that your clients aren’t your buddies.
Sure, you can develop a friendly relationship with them over time, but at the end of the day, they’re still people who pay you for a professional service, so there are times where you have to have professional conversations.
And a late payment demand letter is one of those times. I recommend that you create a sequence to have on hand that includes:
✔️Initial payment reminder – keep it polite and direct. There’s no reason to assume ill intent quite yet. The payment isn’t due yet, so this email is to simply remind them that it’s coming up.
✔️Firm follow-up after the due date has passed – when the payment due date has passed, it’s important to follow-up with a firm message. You can still be polite, but make it clear that their payment is due and give them an easy way to submit it (provide the link, step by step directions, etc.)
✔️Final demand letter with clear next steps – if the allotted time has passed and they *still* haven’t made their payment, it’s likely time for a demand letter stating that their payment is past due and clearly outline what will happen if it’s not submitted by X date (ex. project pause, holding deliverables, legal action, etc.)
As always, you could craft these on your own, but if you need a little help phrasing things in a professional and *legal* way without burning bridges, my Late Payment Demand Letter Sequence Template is for you!
This sequence is ideal for freelancers and service providers who want to stop chasing payments and start getting paid. Because again, you're already wearing enough hats and this doesn’t have to be one of them!
The Best Way to Legally Protect Your Freelance Business
Overall, the best way to legally protect your freelance business is by having certain policies in place, like payment policies for example, and ensuring that you have systems you can fall back on, like your late payment demand letters, to help you implement everything with confidence and ease.
In addition to your late payment demand letters, I also recommend implementing 3 key contracts for your freelance business right away: Independent Contractor Agreement, Website Privacy Policy, and Website Terms of Use – I explain more about the importance of each of those here.
With all of these things combined, you can run a successful freelance business and know that you’re protected every step of the way!
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