Though many people choose the nontraditional role of working as an independent contractor, this type of job isn’t without its risks. Many independent contractors work with clients that refuse to pay them once the work is completed. Should you ever find yourself in this situation, know that all hope isn’t lost. Keep the following tips in mind to make sure you get the payment you’re owed:
1. Review the Contract and Send Your Invoice
As an independent contractor, it’s very important to thoroughly review your contract. Ideally, details like your fee, deadline for payment, and late fees should be addressed in the contract. Reviewing your contract will give you the confidence that you’re in the right and protect you in the event that you take your client to court.
After looking through your contract, resend your invoice. In some situations of late payment, the client failed to receive or see the initial invoice. Sending a follow-up invoice is perfectly acceptable in this situation. Likewise, it’s a good idea to send an email as a reminder that you’ve resent your invoice.=
2. Contact the Business Manager
It’s easy to feel as though you have no resources when working as an independent contractor. Without an HR team on your side, getting assistance from your client is a little more complicated. Consider contacting the business manager of the company you’re working with. In most cases, independent contractors aren’t working with the person responsible for payments.
Get in contact with the business manager by sending your signed contract along with another copy of the invoice. This is generally enough to encourage the person in charge of payments to follow through. Experts like Carina Advisors recommend including the number of days the payment is past due as this can motivate them to send the payment.
3. Make the Call
Emails are only effective if the client on the other end is responsive to your efforts to communicate. If your emails keep getting ignored, it’s time to make a phone call. Either call the client or business manager to follow up on your late payment. Remember to be professional, yet straightforward when discussing your situation.
Don’t hang up the phone without getting to the bottom of your missing payment. In the event that they don’t provide a suitable answer as to why they won’t pay you, the next step is to send a certified letter.
4. Send a Certified Letter
If emails and phone calls are still not effective, your final attempt to reach out should be with a certified letter. Having your letter certified carries a bit more legal weight that can encourage the client to finally respond with payment. While these letters are typically beneficial in taking a case to court, they can also be the motivation your client needs to respond to your invoice.
Sending a certified letter is generally an indication that you’re prepared to file a lawsuit. Experts from Carina Advisors suggest including a deadline for the client’s response in the letter. If this deadline isn’t met, plan to file your lawsuit.
5. Filing a Lawsuit
If all other attempts to get your payment are futile, the next step to take is to file a lawsuit. Consider consulting with a lawyer for advice on how to proceed. Depending on the amount of money owed, it may be more cost-effective to avoid going to court altogether. However, if you’re still motivated to go through with the lawsuit, taking legal action will help you get the money you’re owed.
Asking for payment isn’t always enough for independent contractors. Make sure you receive your next payment by keeping these tips in mind