Use Clear Client Agreements to Ensure Timely Payments

Use Clear Client Agreements to Ensure Timely Payments

Virtual work does not allow you to interact face-to-face with your clients on a daily basis. The risk factor can be high. Putting payment agreements in place right from the beginning is vital to minimise the damage in case your new client turns out to be a bad pay master.

How to minimise your risk

Several things to keep in mind before you commence working for new clients.

  • Inform your clients about your charges upfront so that they know exactly how much they have to pay you for your service.
  • Set up a contract containing all the terms and conditions necessary to avoid any confusion regarding the work or the system of payment.
  • Specify the mode of payment that you accept. This may be Direct Bank Transfer, Stripe or PayPal.
  • Initially, set up a weekly or fortnightly invoice system to check their speed of payment. In case something goes wrong, you will lose only the two-weeks pay. Alternatively request a deposit or payment in advance if using a retainer.
  • Clearly state your payment terms in the invoice
  • If payment becomes outstanding, clearly state that you will not undertake up any further work until payment has been received.

These details can save you a lot of time and hassle in the future and can reduce the risk that comes with taking on new clients.

Benefits of a payment agreement

  1. You can work in a tension-free manner knowing that your payment is secure. This helps you to focus on your work completely.
  2. Your clients are fully aware of your terms. There is no question of any argument regarding this matter in the future.
  3. The process of working is streamlined and hassle-free with a proper payment agreement in place. You can simply follow the method once it is in place instead of making changes in the system for every client.
  4. This is a polite and professional way of ensuring payments from clients. You can simply hand over the agreement without having to explain anything.
  5. Your professionalism and confidence can secure more clients when a proper payment system in place.

So go ahead and set up your payment system as soon as possible!

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