How Independent Contractors Can Ensure Timely Payments
There are a number of convenient perks enjoyed by independent contractors. Not only can they choose how many jobs they take on, they can essentially set their own hours. Additionally, since many contractors work from home, they don’t have to get up at the crack of dawn or endure an arduous daily commute. Still, working as an independent contractor has its downsides. Since most contractors can’t count on regular paychecks, it’s important that clients pay them for their services in a timely manner. Contractors who have had difficulty collecting payments are urged to heed the following tips.
Be Prompt When Sending Out Invoices
If you expect a client to pay up, it’s imperative that you send them an invoice upon completion of a job. This is particularly important if you’re being paid by the hour. Additionally, make sure to use a professional invoice template when putting together your invoices. For best results, try this template from Aynax. In addition to creating an air of professionalism, this will provide your clients with a comprehensive rundown of the services you performed and the number of hours you put in.
Allow At Least 48 Hours for Payments to Process
Odds are your clients have a lot going on, and it’s quite possible that taking care of your invoice is far from a top priority. Furthermore, in all likelihood, each of your invoices has to go through a number of channels before the payment is finally processed – particularly with large-scale clients. With this in mind, give clients at least 48 hours before contacting them in regards to unprocessed payments.
Don’t Adopt a Combative Tone in Response to Late Payments
More often than not, there’s a perfectly reasonable explanation behind late payments. For example, your invoice may have been detected as spam or your contact at the company may have been out sick. Taking this into account, avoid adopting a combative tone when contacting a client about a late payment. This will ultimately reflect poorly on you and make certain clients less likely to seek out your services in the future.
Many independent contractors lack job security. As such, they’re unable to collect salaries or receive health benefits from clients. For this reason, it’s important to pay contractors in a timely manner and never renege on agreed-upon payment dates. Contractors determined to ensure prompt payment for their services should send out invoices ASAP, allow at least 48 hours for payments to process and be courteous when contacting clients in response to late payments.