Self Employed And Not Been Paid? – What You Should Know
Self Employed And Not Been Paid
Working as a freelancer or independent worker can be challenging at the best of times, but when you’re hit with late-paying clients this can make being self employed a lot harder.
Late payments are an extremely common challenge for freelance workers in the UK, and it’s been shown that 50% of those workers don’t get paid on time or at all.
Have you recently undertaken a job and are you thinking to yourself “I am self employed and have not been paid?”
This can be an extremely stressful and uncomfortable situation, especially as there is no employment legislation to help out your situation.
Getting paid is vital when you work as a self employed contractor or freelancer, and when you don’t get paid it is essential that you know how to react.
However, do NOT worry as there are ways in which we can help to ensure the process of recovery is easy and stress-free.
How To Collect Unpaid Invoices From Customers
If you’re in the position of being self employed and not been paid, collecting unpaid invoices can be tough, especially if it’s your first time having to deal with this.
A pivotal point of driving your business’s success and durability is to maintain healthy cash flow, so tackling late payers is essential to maintaining a healthy work-life.
We asked our expert debt collection officers at Federal Management to help us put together 5 key points as to how you can collect unpaid invoices effectively and professionally:
After working hard on a job only to then be met with a client that hasn’t paid on time can be extremely taxing on both your mental health and on your business.
You have every right to feel stressed and upset if you’re self employed and not been paid.
However, before assuming that the client is refusing to pay we suggest you wait a few days before sending a polite reminder.
Acting irrationally at first and getting angry may result in no further business from the client.
2. Ensure Payment Terms Are Discussed And Confirmed Early On
In commercial businesses it’s common practice to set out an invoice period before any works or services are carried out. These are usually on 30, 60, or 90-day payment terms.
It’s recommended that measures such as these are put in place for self employed contractors or freelancers to ensure payment.
These measures should ideally be written down, and will include:
- Discussing when you will invoice the client.
• What the payment terms will be.
• Is there to be a deposit paid before the works go ahead.
• You may also want to include late payment charges onto your terms.
Enforcing these parameters before taking on a job will hopefully reduce the number of times, if ever, that your client doesn’t pay on time.
3. Get Something In Writing
It’s recommended that you get something in writing (i.e. a contract) to protect yourself in advance – if things take a turn for the worse once a job has been completed, it may be difficult to recover a payment without proof.
A contract is a legally binding document and will detail all the work that is to be carried out and how much is to be paid and when.
These extra precautions may take a lot of time to produce in the short term, but they will save you thousands of pounds in the long term.
If you are a construction worker, there are associations such as The Federation of Master Builders that can provide access to contract templates.
These templates can help self employed contractors with the services that they provide.
4. Communicate With The Client
As the person that carried out the work for the client, you have every right to contact them in any way possible to retrieve your unpaid invoices.
This can be done in a few ways:
- Politely calling the client to chase for payment.
• Sending them a letter reminding them of their late invoice.
• A statement of outstanding cost – this should be sent if the first two methods of communication fail to provide any form of payment forthcoming.
5. Instruct A Debt Collection Agency To Recover Your Owed Monies
If the customer is refusing to pay, then it’s wise to contact Federal Management, who specialise in providing a Debt Collection Recovery services. Every day, we recover thousands of pounds for self employed contractors like yourself.
Personal Debt Collection is one of Federal Management’s biggest services and we have a team of industry-leading debt collection officers.
Our strategy is a Professional, pragmatic, and persistent approach. We pride ourselves on this, along with pioneering practices and procedures which continue to set the standard for debt collection agencies in the UK.
Our objective is to maximise the potential of the successful recovery of unpaid monies.
We ensure that we deliver the best service to our clients by delivering market-leading results every year with:
- UK’s Lowest Commission rates from 6%.
- Up to 90% Recovery rate on undisputed debts.
- Low fixed cost debt recovery service.
- No collection means no collection costs to pay.
It’s extremely vital that you choose the right agency for your debt recovery, as choosing the wrong one may lead to burnt bridges in future relationships with your clients.
Our professional debt collection officers are highly specialised in the field and can recover the debt in the most expedient manner. This will leave you to focus on valued tasks such as continuing to grow your business.
For advice or help on how we can recover your unpaid invoices, get in contact with us on 0333 043 4425 or email us at firstname.lastname@example.org