Outstanding invoices are one of the most frustrating challenges freelancers face. You’ve done the work, sent the invoice, and then… tumbleweed. It can leave you feeling powerless and demotivated. Even one missed payment can mean not having enough to cover the bills.
More than frustrating, it’s also incredibly common. Our own research shows that one in three freelancers get paid late every year, and nearly one in five have had to wait more than three months past an invoices due date before they saw their money.
Worse still, one in three have completed work that they never ended up getting paid for (and that’s not because they were doing an ‘unpaid trial’).
It’s a clear breach of the terms you (hopefully) agreed with your client up front. So why does it still happen, and what can freelancers actually do about it?
Why don’t clients pay their freelancers?
It’s tough out there for businesses right now (some of them at least). Taxes are up, GDP growth is weak, and tariffs seem to be in the news every day. It’s forcing businesses to be more economical with their spending. That not only means spending less, but also delaying spending for as long as possible – or “cashflow optimisation”, as it’s known in corporate speak.
If your client is in this position, they might insist on a longer payment window for future work. But they could probe for ways to get away with dragging out your current invoice, too.
That’s where unclear payment terms can become a problem. If your contract or invoice isn’t watertight in setting expectations around payment, a client or customer might take advantage of this uncertainty and delay payment for as long as they can get away with.
When contracting with a larger company, internal bureaucracy is another culprit in slowing down payments. An invoice getting missed in a busy inbox, or the recipient being slow to forward it to the finance department, are typical examples. Some firms will make freelancers jump through hoops to even submit an invoice, demanding that specific platforms, formats and codes are used for it to be considered valid.
And, of course, sometimes they just forget. Whatever the reason, the impact on freelancers is immediate and stressful especially when, unlike big businesses, freelancers don’t have big cash reserves to fall back on.
Sneaking into your client’s office, logging on and sending the payment yourself obviously isn’t an option (even if it does feel perfectly justified). So, what can you actually do to make sure you get paid in a timely manner?
Tighten up your payment terms
I’m not placing the blame on freelancers here. But the first step is to make sure you haven’t left any wiggle room in your payment terms for a client to claim they weren’t sure what you meant.
Whether you’ve accepted your client’s standard payment terms or negotiated something yourself, make sure you’ve read the final wording carefully and checked the specifics with your client.
For example, if you’ve agreed to “net 30 EOM” (end of month), then your invoice won’t be due until 30 days after the end of the month you issued it. So if you sent it on 1st May, don’t expect payment until 30th June!
Alternatively, you might have agreed to be paid upon completion of work. But when is work ‘completed’? Is it from the date you submitted it, the date they acknowledge it, or they date they accept it?
It’s worth taking the time to get these details nailed down before agreeing anything – it’ll save you time, hassle and money in the long run. Our Statement of Work template walks you through how to get this right.
Have a process for outstanding invoices
If one of your payments does become overdue, having a proper process to follow will make chasing your client more structured and less stressful. Having a series of escalating reminders and follow ups is one popular strategy.
In many cases, a gentle reminder is all they’ll need. But if a week goes by and you still haven’t been paid, it’s time to follow up with a more formal notice. This lets your client know you’re serious, while giving them a chance to pay up without extra penalties. Reference your original invoice and payment terms, as well as fees or interest if it applies to your contract (more on how statutory interest works in our late payment guide). And after two weeks, it’s probably time to send a final demand letter.
To take things further, you could opt for mediation or even a court claim to recover what you’re owed. This should be considered as a last resort, but it’s important to know you have options.
If your client is legally defined ‘large’ business, the Office of the Small Business Commissioner may also be able to help you in your pursuit of payment by adding additional pressure to your client to pay up.
No matter how far things go, remaining polite and professional throughout is essential. As frustrating as the situation may be, you don’t want to potentially harm your professional reputation for the sake of one invoice.
Need help with overdue invoices? We’ve got your back
Chasing late payments can be draining, but you don’t have to tackle it alone. IPSE offers a range of support services to help freelancers get paid on time.
You can access template reminder letters to chase overdue invoices professionally, get advice from legal helplines about recovering debts, and access a hub of resources to help get your contracts right from the start.
We’re also actively lobbying for fairer payment practices, pushing for stronger penalties for persistent late payers and for the UK’s standard commercial payment term to be lowered to 30 days.
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