A Newbie Freelancer’s Guide To Getting Paid On Time

According to the recent survey by Freelancers Union, 44% of the participants (freelancers) reported problems with getting paid. Some are even tracking their clients for owning more than S$13,000 (US$10,000). Yes! Getting paid is one of the most frustrating and stressful aspects of being a freelancer.

In a world of fixed expenses and variable income, the stress of a freelancer comes when they have to deal with stubborn clients. While frustration arises when the client piles up more work when you still have not gotten paid yet.

Although this dilemma can be overwhelming at times, find fulfillment with this clever plan to get what you de$erve:

GET PAID FIRST

For your first client, shall you charge a flat rate or shall you give a discount? No matter what you choose to do, do not start working until you get upfront. This is the best case scenario!

As cash flow is the core of most freelancers, you do not want your finances to crash just because of the debt of your clients. Ask them to pay at least two weeks in advance before you commence your work to avoid chasing for your clients.

REQUIRE A DOWN-PAYMENT

If your client cannot pay upfront due to valuable reasons, consider requiring a down-payment to send a message that you mean serious business. As a newbie in the field, it is understandable to feel uncomfortable as you do not want to make demands that could ruin the new relationship you have with your client. I felt the same way in the first few months. However, like any professional services firm, you must require a down-payment to ensure that your client is capable of paying you.

SET A SCHEDULE FOR PAYMENTS

It is better to stick with a billing schedule to keep track of everything. Whether you would like to send the invoice every month or bi-weekly, you must bill on time. To put things in perspective, you may treat your client’s payment as something you can deduct to your credit. For example, deduct the “total bi-weekly due amount” to the credit pool upon making an invoice for it. This way, you are giving more importance to time and money management.

SEND A FRIENDLY REMINDER

For late payments, act immediately by sending a friendly reminder to your client. Give him and her the benefit of the doubt by assuming that the lack of payment is due to a mistake, medical reason, or an oversight. That is all it takes to get paid – sometimes.

PUT EVERYTHING IN WRITING

To prevent the unwanted “late payment scenario”, you need to have a contract that defines when you will get paid and includes a clause for when you do not get paid on time. In your contract, you must guarantee that…

a. the client does not own anything they have not paid for,
b. the client will be charged with an interest for overdue invoices, and
c. the court shall give you the right to get your money back.

Image Credits: pixabay.com (CC0 Public Domain)

Image Credits: pixabay.com (CC0 Public Domain)

This binding contract protects you in case legal matters arise.

Sources: 1, 2, 3, & 4

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Snapchat’s Snapcash lets you transfer money fast!

One of the widely used Social Messenger App in Singapore (especially for the youngsters), is Snapchat. Recently, Snapchat has unveiled its new feature called Snapcash that allows its users to send money to their Snapchatting friends.

We all know how Snapchat works: you take a photo or a video of yourself; you send it to your friend; and, seconds later, it will disappear as though it never existed. So, will sending money be as quick as that?

Snapchat partnered with Square, Inc. to revolutionize fast mobile money transfer. Square is a company, which permits individuals and merchants in the United States, Canada, and Japan to accept offline debit and credit cards on their iOS or Android smartphone or other tablet devices.

Snapcash via blog.snapchat.com

Snapcash via blog.snapchat.com

For now, Snapcash is only available to users in the United States who have debit cards and are 18 or older.

How does it work?

Users must enter their banking details to a Square account first. Then, to send cash, Snapchatters must type the dollar sign with the amount (e.g., $12), and click the green button. This shall be done through a private message.

The good thing is that Snapcash messages don’t automatically disappear. Although, once you send money through, there is no way to cancel the transaction. So, be careful.

Another cool way to send money is by using the app’s “swipe-to-send” feature by typing three dollar sign into the chat window, like this video below:

Oh, it’s like tossing play money around—except it is real!

Snapcash is fast, fun, and incredibly simple. At least that is what Snapchat says. What do you think? Is it a good idea to bring this feature in Asia?

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