When we read about an App that claims to increase freelancer's chances of getting paid on time by 80%, we were sceptical. Anything that can combat the nightmare of chasing clients is worth investigating so we got in touch with Ivo Weevers, Director of Albert, a new invoicing app aimed at freelancers, to ask how they're doing it. Here's what we found out.
We've all experienced late payments and on the odd occasion non-payments. Most of the time we blame the client's laziness or think they're trying to rip us off but it would seem that this is not the main reason.
The team at Albert spent months researching the data, pouring over the stats and the reasons why invoices don't get paid on time. The data is surprising to say the least. "Invoicing quickly tends to have a bigger effect than invoicing terms. Freelancers who sent their invoices on the last day of the job completion were paid within five days or fewer. If the invoice was sent a week later, the delay in payment was doubled to ten days."
Why do employers pay quickly straight after a job?
"Invoicing as quickly as possible will allow you to benefit from ‘recency bias’. This means that your client will assign more importance to recent events as opposed to those that took place in the past. Therefore, after immediately completing your work, it is imperative to send your invoice quickly so that your client gives more importance to it as he/she has just seen the results of your job."
"In the UK, it is estimated that small businesses – including freelancers and contractors - are paid on an average of 21 days late."
What else can freelancers do to protect themselves from this statistic?
- Manage expectations from day one: don’t be afraid to explain how you work and when to expect payment. Contrary what many think, it actually comes across as professional.
- Know Your Client: Demonstrate strong knowledge of your client, market and their partners. A client cares about his network.
- Be clear with your invoice details: Look professional and leave no room for discussion.
