Get paid on time, every time.
Did you know the word 'freelancer' originated from medieval knights who would kill evildoers for the King and then not get paid for eight months!? When we set up Indycube Community, we stopped and asked ourselves, what's changed for freelancers since then?
51% of invoices are paid late, with more than a third at least 2 weeks late. As an individual running a business, this can be incredibly frustrating. Positive cash flow is essential for both maintaining and growing a successful business, but the bottom line is small businesses have a hard time getting paid.
There are several reasons for this, not all of them malicious. While bigger corporations may think they can get away with not paying up until aggressively challenged, smaller clients may hold off, wanting to maintain funds until you’re forced to chase up payment, and others may be simply forgetful - either way, who needs the hassle?
Ryan Clifford of Pointbim Ltd, a regular desk user at our coworking space in Cardiff Bay, has had plenty of experience in this. ‘In a worst case scenario,’ he said, ‘small claims court has always worked for us. Personally I have not lost a debt, but you definitely need to keep the pressure on.’ There are so many articles online about chasing invoices - how to word emails and letters, how to politely request the money you are owed without jeopardising client relationships, and just how long is too long to wait on a payment? The advice is endless, as is the problem. A study by Xero.com found that between 70% and 80% of businesses now give 2 weeks or less for payment completion and more than half of those request payment within 7 days, preferring to set shorter margins in anticipation of late payment. Whatever payment date you choose, spending a full day following up the issue, sending emails and making phone calls is an unnecessary burden to say the least.
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