Freelancing Insurance insurance-blog page header image

Helpful tips for freelancers and contractors


Encouraging clients to pay promptly

Late payment can be a real headache for freelancers. Here's some tips to ensure you get paid promptly:

Man in suit signing cheque

How can you avoid payment disputes?

To reduce the likelihood of late payments:

  • check the payment practices of a business before contracting with them
  • have a written contract that includes your payment terms and conditions
  • know your rights and be willing to use them
  • considering investing in payment software to help with invoicing

Normal payment terms are between 30-60 days, depending on the company size. If a client asks for longer payment terms, perhaps you could ask for a longer notice period to protect your income stream?

Make sure you know who the invoice should be submitted to, whether you need to quote a reference or a purchase order number and what you need to include in your invoice.

What can you do if a client doesn’t pay within the agreed time?

The Small Business Commissioner recommends raising and invoice for late payment charges. You can claim interest at 8% plus Bank of England base rate on the outstanding amount, debt recovery costs and a fixed sum based on the amount owed.  The Small Business Commissioner site contains a calculator for these charges here.  Often raising an invoice for late payment charges will result in the original bill being paid promptly and is more effective than chasing.

My client still won’t pay, what are my options?

There are lots of great tips for chasing payment on the Small Business Commissioner website, depending on who owes you money.  If you get stuck, the Small Business Commissioner will name and shame poor payers (see case studies on site), recover money for small businesses and work with poor payers to change the payment culture. 

Latest News

How much should I charge as a contractor?

Most freelancers use either day rates (charging by time spent) or quote a project fee for an agreed outcome (value pricing). There are advantages and disadvantages to both approaches depending on your role, level of experience and how tightly the project is defined.

More

How to pitch for business

When you first start freelancing you need to be persuasive to encourage a business to hire you, and you need to be resilient as you may have a few knockbacks.

More

Encouraging clients to pay promptly

Late payment can be a real headache for freelancers. Here's some tips to ensure you get paid promptly:

More

Which insurances do I need as a freelancer?

There are many different types of insurance. A few of them will be needed when you first start freelancing but as you expand your business you may need to add more.

More

Can I take out a policy just for the duration of my contract?

Freelance contractors often ask whether they can take out a policy to cover only the period of their contract.

More

Always check the policy you buy online is suitable for your needs

Buying online is, generally, cheaper but please read the small print!

More

Do I need cyber insurance?

As a contractor, you'll already have professional indemnity insurance so why would you buy cyber cover?

More

All major credit cards accepted.

major credit cards image