Show me the money! Or, How to collect what’s due without irritating your client
By Robert Roth
As freelancers, we always run the risk of one of our clients stiffing us. But, there are some things we can do to prevent that from happening. First, realize being paid doesn’t start with an invoice. It starts at the beginning of the engagement—with a written estimate, signed and sent back to you (email PDF or fax) by the client.
Include in your estimate not only the services you will provide, but also your terms, especially financial terms. Here are the simple terms I use:
· Client pays for all expenses, including conference calls, transcription fees, courier & overnight services, travel & meals, etc.
· One-third (or one-half) of total estimate to begin project, with the balance due at end of project.
· All work furnished is considered Work for Hire.
· The laws of the state of Georgia. USA, govern this agreement.
· Disputes over services provided by ROTH copywriting will be under the jurisdiction and venue of courts in Dekalb County, Georgia, USA
· If you accept this agreement, please sign and date it anywhere. Fax or email a PDF back. Thanks.
As soon as I receive the signed contract, I rush the client an invoice for the upfront payment. This is known as the “moment of truth.”
Here are some more good tips:
Assess the Creditworthiness of Potential Clients
For a public company, check its financial profile on CNN Money (http://money.cnn.com/) Market Watch (http://www.marketwatch.com/) or other financial sites. You can also Google “(company’s name) lawsuit.”
For a public company, check its financial profile on CNN Money (http://money.cnn.com/) Market Watch (http://www.marketwatch.com/) or other financial sites. You can also Google “(company’s name) lawsuit.”
For private companies, getting information is more difficult, so learn to trust your gut. Assess whether or not the potential client has a viable business (or if it’s a startup, does their business model make sense?). Again, do Google searches to make sure that your potential client isn’t involved a lawsuit.
Keep Good Records
In addition to your signed estimate, keep every email (to and from the client) in an Outlook folder. It can come in handy down the road if you’re trying to collect a debt in small claims court.
In addition to your signed estimate, keep every email (to and from the client) in an Outlook folder. It can come in handy down the road if you’re trying to collect a debt in small claims court.
Go Paperless
It’s easy to procrastinate sending paper invoices. I know. So, create PDF invoices instead and email them to clients. You’ll find many actually prefer that. A good, inexpensive estimate/invoice program is My Invoices and Estimates Deluxe 10. It allows you to print invoices as PDFs. You can download it at http://myinvoices.com.
It’s easy to procrastinate sending paper invoices. I know. So, create PDF invoices instead and email them to clients. You’ll find many actually prefer that. A good, inexpensive estimate/invoice program is My Invoices and Estimates Deluxe 10. It allows you to print invoices as PDFs. You can download it at http://myinvoices.com.
Whenever possible, bypass your contact and email your PDF invoice to someone in “accounts payable.”
The job of the people in accounts payable is to pay you, so send your invoice to them rather than to your contact. Call the company first and ask for accounts payable. Get a name and email address of the person to whom you should send your invoice. At one company I did business with, I discovered that the accounting department had never seen a single invoice because my contact didn’t forward them.
The job of the people in accounts payable is to pay you, so send your invoice to them rather than to your contact. Call the company first and ask for accounts payable. Get a name and email address of the person to whom you should send your invoice. At one company I did business with, I discovered that the accounting department had never seen a single invoice because my contact didn’t forward them.
Go to small claims court.
In Georgia, the County Magistrate Court, also referred to as the small claims court, handles money claims under $15,000, per Georgia Code 15-10-2. A person may file a claim in Magistrate Court with or without an attorney. You may have an attorney represent you if you choose; this would be at your own expense. The court does not appoint attorneys for civil cases. Once you show you’re serious about collecting the debt, you have a fifty-fifty chance that your client will pay you as soon as she gets the summons. Get more information here: http://public.findlaw.com/litigation_appeals/georgia-small-claims.html.
In Georgia, the County Magistrate Court, also referred to as the small claims court, handles money claims under $15,000, per Georgia Code 15-10-2. A person may file a claim in Magistrate Court with or without an attorney. You may have an attorney represent you if you choose; this would be at your own expense. The court does not appoint attorneys for civil cases. Once you show you’re serious about collecting the debt, you have a fifty-fifty chance that your client will pay you as soon as she gets the summons. Get more information here: http://public.findlaw.com/litigation_appeals/georgia-small-claims.html.
Don’t go to small claims court.
If you’re type of person who eschews confrontation or prefers serenity to stress, small claims court is most likely not for you. It can get pretty intense in the courtroom. It’s probably better to spend your time on yoga.
If you’re type of person who eschews confrontation or prefers serenity to stress, small claims court is most likely not for you. It can get pretty intense in the courtroom. It’s probably better to spend your time on yoga.