Getting Paid on Time as a Freelancer
Chasing works better than penalising
A polite reminder the day after the due date recovers far more money than a late fee clause, and costs you nothing in goodwill. Most late invoices are an oversight: the person who approves it was away, it went to the wrong address, or it is waiting on a purchase order nobody mentioned. Ask early and you usually find out which.
Escalate by degrees. A reminder, then a phone call, then a note to whoever signs off the budget. Do not start with a threat you are not prepared to follow through on — and remember that a late fee you never agreed in writing is very hard to enforce, whatever the invoice says.
What to do before the work starts
Most payment problems are set up before the first deliverable: no written terms, no named contact for invoicing, no purchase order where the client's system requires one. Agree the payment terms, the invoicing address and any reference the client needs in the same email where you agree the price. If late fees matter to you, that is where they belong too.
For larger projects, stage the payments. A deposit before starting and a milestone partway through means a client who stops paying costs you one stage of work, not all of it.
Frequently Asked Questions
When does an unpaid invoice become a bad debt I can deduct?
For most freelancers, never — and this surprises people. If you are a cash-basis taxpayer you only report income when you actually receive it, so an invoice you were never paid was never income, and there is nothing to deduct. You have lost the time, not a deductible amount. Accrual-basis businesses that already reported the income can write it off; most sole proprietors are not in that position.
Should I stop work when an invoice goes unpaid?
Say so before you do it, in writing, and give a date. Pausing without warning reads as unprofessional; pausing after a clear notice reads as a business with terms. Make sure your agreement allows it.
Is my client data stored anywhere?
No. Invoices and client names stay in your own browser and are never sent to a server. That keeps client details private, and also means the data does not sync between devices or survive clearing your browser data.