How To Deal With Late Payments

This video offers tips and advice on how to deal with late payments from clients. Late payments are one of the prevailing factors which leads to stunted growth for small businesses. If small business owners are not paid on time not only can they not pay themselves but they cannot pay those who work with them.I will never really understand how a client can use the services of an individual/company and not pay, you would never be able to walk out of a restaurant after the chef and staff have worked hard and not pay for your meal.We need to address this issue of late payments which can cause a high level of stress and cash flow issues for freelancers and small business owners.

There are more formal, legal ways in which a late payment can be dealt with when they become more serious and I would most definitely recommend seeking professional advice when they become a serious issue. Do not leave it too late, you have rights and are protected by the law but you must learn what those rights are.

"UK freelancers are entitled to claim interest on late payments under the Late Payment Act, introduced in 1998. But the only way to enforce the fee is through the courts, where the freelancer must be able to prove a contract was in place"https://t.co/zZww6fh8JB

— Ronke Lawal (@ronkelawal) July 6, 2019

There are more formal, legal ways in which a late payment can be dealt with when they become more serious and I would most definitely recommend seeking professional advice when they become a serious issue. Do not leave it too late, you have rights and are protected by the law but you must learn what those rights are.Whilst you are waiting for your late payments to clear make sure that you also take the time to consider these financial tips for your small business:Accounting - having an experienced, high quality accountant is invaluable particularly when it comes to those annual reports and tax returns. A good bookkeeper is also recommended if possible to help with the day-to-day organisation of your financial paperwork.Organisation - Keeping all your receipts and invoices well organised allows for stress free record keeping and troubleshooting where needs be. If you can afford to hire an administrator or bookkeeper who can help with this then go for it! Anything that will keep you organised.Budget & Planning - Make a monthly budget which allows for all regular outgoings as well as any new projects that require a financial injection. Plan your projects accordingly in order to work well with your budget.Awareness - Most people take it for granted but its crucial to keep up to date on what the financial markets are doing and how this will affect your business. Understanding market trends and interest rate fluctuations can prove priceless for long term financial planning.