Freelancer Tips: How to Deal With Unpaid Invoices — MoneyCrashers

Dealing With Unpaid Invoices as a Freelancer

Are you a freelancer? If so, we have something in common. One struggle that many freelancers have is getting paid on time. Part of the problem is that freelancers don’t enjoy the same legal protections that employees do:

Freelancers, on the other hand, are not on a company’s payroll, and as such are not entitled to any unemployment benefits. Things become problematic for freelancers when a client refuses to pay or runs out of money. While clients are indeed obligated to meet the terms of a contract, the labor law protections that cover employees do not apply to freelancers.

In other words, if a client does not pay a freelancer, the freelancer’s primary recourse is to file a lawsuit in small claims court. If a freelancer works for a company that goes out of business, the freelancer’s invoices are lumped in with those of other bankruptcy creditors and, unlike employees, are not given priority.

Click on the text above to read the full article at MoneyCrashers.

Also, if you are looking for a good invoicing software, check out Freshbooks. I’ve been using them since 2011 and am very happy with their service. If you click on the link I provided, you’ll get a free month (and so will I!).


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