Steps to Take When You're Not Paid as a Freelancer

It happens to every freelancer at some point: a customer delays, forgets, or just refuses to pay you for work completed. When it comes to collection, you have various alternatives, ranging from simple follow-up to taking your customer to court. As with any commercial arrangement, it is advisable to begin with the least damaging option.

Examine your contract and resend the invoice.

The first step is usually to reference your contract—assuming you took the effort to write one that both you and your client signed before beginning work. Hopefully, you stated the terms, how much you were to be paid and when, as well as any late fees that would be applied if the client did not pay within the time range you specified.

If you completed all of this and sent your invoice and are still waiting to be paid, resend it. Follow-up invoices are completely appropriate. You can even send them a courteous message informing them that you are resending the invoice in case they did not receive your initial invoice. After then, allow a few weeks for a response before proceeding to the next stage.

Things do get lost in the mail, so even if the client is avoiding you, simply following up indicates that you're giving them the benefit of the doubt. You might get a check in your mailbox before the end of the week, or your concerns about avoiding payment may be proven.

If you're dealing with a client who won't pay and don't have anything in writing, send them a letter in the same format as if you had a contract. You can inform the client that you agreed on a payment amount and terms and are only following up to see when the check will be mailed.

Writing to the Business Manager.

Most freelancers don't deal with the person who pays them. Most likely, you're interacting with a contact person in the creative department because that person is aware of the project's status, which means you're not working with the person who writes the checks and keeps the books.

A letter or email to the company's business manager, along with a copy of your invoice and signed contract (with both your and the clients' signatures), should suffice. To find out who the business manager is, phone the company and ask for their name. Don't go into depth about yourself or what you want to discuss with that person. Simply obtain the business manager's name and contact information.

In your letter or email, inform the business management of the project's completion date and provide a copy of the contract signed by you and their company representative, as well as the outstanding invoice. Be kind and professional, but do not hesitate to state how many days the invoice is over due.

Even if your contract states that you have the right to collect late fees, this act of kindness can result in faster payment and the prospect of a continuing working relationship with the company.

Following Up With A Phone Call

A phone call can be more successful than sending multiple letters or emails. If you are ready to make a call, please contact the business manager. When you contact this person, ask if they received your letter or email.

This query will allow them to discuss your position, whether they tell you they don't understand what you're saying, that the check is in the mail, or explain why they don't intend to pay you.

If they claim they have no idea what you're talking about, offer to resend the material. If the check is on its way, tell them you're happy to hear it and look forward to getting it. If they indicate they don't plan to pay you, find out why.

You may be able to remedy the issues during that conversation. If you are still unable to reach an agreement and it appears that you will not be paid, the next logical move may be to issue a final, certified letter.

Sending a certified letter

You can send a certified letter to a specific individual to ensure that your invoice and letter are received, or to notify them that you intend to proceed to the next logical step in your pursuit of payment. Certified letters are routinely ignored.

Certified letters are more useful when you plan to take the issue to court. Your certified letter can notify the client that you are preparing to initiate a lawsuit to recover the money you are owed.

Tell them that if you don't hear from them by a particular date, you'll take them to court. Just make sure you provide them a sufficient amount of time to react. Do not send your certified letter on a Monday demanding that you receive your check before Friday.

Taking Your Client To Court

If your attempts to resolve the situation have gone ignored, and it is evident that this client will avoid paying you at all means, you may have little choice but to take your case to court. Many lawyers will provide you free advise over the phone on how to handle your case.

Unfortunately, if you've reached this point, you're at a fork in the road that most freelancers choose not to take. While you should be compensated for your services, are you willing to take your client to court? Is it worth the time, effort, and attorney's fees? You must decide whether to file a lawsuit or to dismiss the entire event and go on without legal action.

Ending the Client Relationship

Fortunately, most freelancers discover that their payment concerns can be managed with the business manager, and they do not have to deal with phone calls, certified letters, or litigation. If you followed the norms of professionalism and courtesy, the client should have no trouble dealing with you in the future. But the real question is: Do you want to do business with them?

If you have to fight for your money every time you complete a project, you might be better off letting that client deal with another freelancer. Sometimes it's best to walk away from a difficult client, otherwise you may find yourself in the same predicament again.