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Even if you love being a freelancer, it can get disheartening when a client doesn’t pay their bill. The truth is, no one likes to work for free. As much as we love being entrepreneurs, we still want to be able to pay our bills, take care of our families, and have a little money stashed away for a rainy day. When a client doesn’t pay their bill, they could be putting your business at risk. So how do you fix it?
State It In The Contract
Although a contract doesn’t automatically guarantee that a client will pay you like they should, a contract will protect you legally. When writing up your contract, remember to include when and how you expect to be paid. I also highly suggest adding in a clause that states the penalty for late payments.
For example, I bill once a month at the end of the month, and my clients all have 15 days to pay to be within their time frame. If not, a 1.5% interest charge is charged monthly until the bill is paid. Once they’ve hit 30 days overdue, all work is ceased until payment. I do this to protect myself and my business, and to ensure that I get paid in a timely fashion.