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Any freelancers/contractors have to deal with debt collection?

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Wondering of any that the peeps here freelancing either as a creative graphic designer or web dev, have to deal with debt collection from small/private clients that are either at risk of nonpayment or are not very timely/regular with fees/invoices?

 

A little background on my question, my GF is a freelance graphic designer, and often lately has to deal with clients either disputing justified timeframe blowouts and cost, that in combination are not very reliable when it comes to paying on time, which suggest that they may be a risk of nonpayment.

She is worried that they might skip on payment (currently owing for around a grand worth of work).

 

What strategies or processes do you have in place to either avoid this kind of situation or deal with dodgy payers?

 

Thanks in advance to anyone answering back :)

Edited by HumanHefner

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Having run a successful construction business in Melbourne for over 4 1/2 years I faced people that are reluctant to pay on at least a monthly basis. Firstly you must send an invoice and you can request payment within 14 days (they actually have 30 days to pay from the time they receive the invoice - so better to hand it to them) then after the 14 days you can seen an 'overdue invoice' "please pay now" letter, then if that fails (and after the 30 days of first invoice) you should type a letter to them explaining the urgency of the payment and that if no payment is made fair work Australia will be involved, again if no response go to the fair work Aus website, there is a template letter explaining your going through the process, then after that its completely up to fair work Aus, they will chase up your money and if needed take the client to court and best of all they cover all cost's.

 

In my experience I only went to court once, and it was settled withing 20 minutes, all other times people payed after reading the letter taken from the fair work Aus website.

I couldn't find the letter after a quick google, but call fair work, or check out their website.

 

Good luck hope you re-cover every cent! I know it can be a hassle, and in future your GF should explain to her clients that there is a 14 day "good relationship" payment period, while they are still not bound by law to pay within the 14 days it is rather there to keep a "good relationship" trust me, when clients pay quickly I always worked better and looked after them. If people are handing over 10k or more then 30 day rule is applied.

 

Cheers- Daniel

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Thanks for the reply Danny, that actually helped frame a few things for her to get on top of with her business, on a side note, I'm helping her develop a more rigid governance and business process so she can lessen the risk significantly in the future.

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Thanks for the reply Danny, that actually helped frame a few things for her to get on top of with her business, on a side note, I'm helping her develop a more rigid governance and business process so she can lessen the risk significantly in the future.

 

Glad to have helped, just remember when your GF provides a service, and the client doesn't pay, and you have written quotes handed to them before carrying out the job, its technically theft.

One a side note- you should have her professional letters start with "balls deep all up in that $hi7" :sex: hahaha

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Thanks for the reply Danny, that actually helped frame a few things for her to get on top of with her business, on a side note, I'm helping her develop a more rigid governance and business process so she can lessen the risk significantly in the future.

 

Glad to have helped, just remember when your GF provides a service, and the client doesn't pay, and you have written quotes handed to them before carrying out the job, its technically theft.

One a side note- you should have her professional letters start with "balls deep all up in that $hi7" :sex: hahaha

Well sir, I try my hardest to live by my mantra :thumbsup:

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