You will be able to set payment terms and a chasing routine that keep money coming in on time.
The work is finished, the client said it looked great, and the invoice went out a month ago with no payment since. You sent a polite email, then another. You do not want to sound desperate, and you do not want to lose a client who might send more work. Meanwhile your base pay transfer comes out of the holding account on the 25th, whether or not they pay.
Late payment is one of the most common money problems for freelancers, and most of the fix happens before the work starts.
A deposit is a share of the fee paid before you start. It does three jobs. It shows the client is serious. It covers your costs if the project is cancelled partway. And it limits how much you can lose if the client never pays the rest. Many freelancers ask for a deposit of a third or a half of the fee on new clients and new projects, though the right share is your own call.
For longer projects, add milestones: payments due at set points, such as after the concept is approved, after the first draft, and on delivery. Each payment covers the work done so far, so you are never far ahead of the money. If a client stops paying at a milestone, you can stop working too, and your loss is limited to one stage of the project.
The worst arrangement is the one many freelancers start with, where all the work comes first and one invoice goes out at the end, payable whenever, leaving every risk with you.
Your payment terms should appear in two places: in the contract or quote the client agrees to before you start, and on every invoice.
They should cover the due date, written as a real date or a clear number of days from the invoice date. They should list how the client can pay you, such as bank transfer or PayNow to your business account, with the details printed. And they should state your late terms: what happens if payment is late, such as stopping work until payment arrives or charging a late fee or interest. Some freelancers also keep ownership of the work until the final payment clears, so a client who has not paid has not yet acquired the rights to use it. Whether a particular term is enforceable depends on its wording, so for large contracts a lawyer's review of your standard terms is worth paying for.
A clear invoice gets paid faster. It shows your name or business name, your UEN if you have one, the client's name, an invoice number, the date, what the work was, the amount, the due date and the payment details. An invoice that leaves the client's finance team asking questions sits in a queue.
Chasing feels personal, which is why people put it off. A fixed schedule takes the feeling out of it. You are following your process.
A three-step schedule works for most freelancers. A few days before the due date, send a short reminder with the invoice attached: "Just a reminder that invoice 041 is due on Friday." Many late payments are simply forgotten, and this catches them.
Shortly after the due date, call. A phone call is harder to ignore than an email, and it often uncovers the real reason: the invoice went to the wrong person, a purchase order is missing, or the client has a cash problem, and each of those needs a different response.
If that does not work, send a formal letter or email. State the invoice, the amount, the original due date, your late terms, and a final date for payment before you consider further action, in a tone that stays firm and factual.
Track it all on the income tab of your records from lesson 4.3. A rising total of overdue invoices is an early warning sign, and module 8 shows how to read it.
If a client still will not pay, there are formal routes. For many smaller claims about goods and services, the Small Claims Tribunals offer a quicker and cheaper process than a full court case, and you do not need a lawyer. The claim limits, fees, time limits and which disputes they can hear are set out on the State Courts website, so check them before you count on that route. For larger claims, other routes exist, and a lawyer can advise.
Formal action costs time and usually ends the client relationship, so it is a last resort. That is the real argument for deposits and milestones: they make it rare.
Mei's standard terms read: "50% deposit before work starts, balance due 14 days from the invoice date, by bank transfer or PayNow to my business account. Work pauses if a payment is more than seven days late." Her chasing schedule is a reminder three days before the due date, a call three days after it, and a formal email at fourteen days late.
Look at your last few invoices and how long each took to be paid, and use what you find to set your own.
Write your standard payment terms and the three-step chasing schedule you will use from your next invoice.
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