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From being an unexplored career option to becoming the new way of making a living, freelancing isn’t about those easy fixes anymore. To qualify as a successful freelancer, you should be able to display unique skill sets and deliver your tasks on time.
India is a growing economy, which is home to many startups, enterprises and SMEs who are hungry for the right skill that would help them grow.
With more freelancers joining the cause, somewhere down the road, a fraudulent and immoral code of conduct causes a rift. Freelancers don’t get paid on time!
An unfair behaviour, isn’t it? Today, we are here to explain some of the ways to avoid such situations as a freelancer.
Always create a freelancer contract
A verbal agreement between the employer and an employee isn’t a favourable solution for a gig. As a rule of thumb, get everything in writing to ensure better understanding and engagement.
A letter of agreement is a contract between the freelancer and a company or business. The contract outlines all terms and conditions regarding the work between both parties.
Few details that are present in the contract:
- Compensation: The agreed amount that needs to be paid after completion of work
- Timeline: A deadline set mutually by both parties
- Scope of work: Defines the freelancer’s nature of work during the tenure
- Additional services: Payment terms set by the freelancer for any extra effort
- Late payment clause: A freelancer can charge an interest rate or set any other terms
- Advance payment: This clause allows freelancers to charge a specific sum in advance
- Termination: Circumstances under which the client can choose to terminate the contract
- Confidentiality: During the tenure, a freelancer should not disclose the work information to any third party
- Privity: Showcases the relationship between the client and the freelancer
- Jurisdiction and dispute resolution: Depends on the nationality of both parties
Always request an advance deposit
Paying freelancers on time works like a catalyst for a higher return on investment. A happy employee/freelancers will gain trust and might end up working for an extended period.
But in some cases, the client disappears without paying, which hurts a freelancer financially and emotionally. Freelancing isn’t an easy road because of such unethical practices.
To ensure a better position of strength and gain higher ground, freelancers shouldn’t shy away and ask for an advance payment before the work begins with new clients.
With Razorpay GST invoices freelancers can customise and can accept advanced payments in just one invoice. Add GST, discounts and shipping details, all in one invoice and let the solution do the calculation for you.
Be sure you know what tax rate you’re subject to for your services as a freelancer. Get GST inclusive and exclusive prices for your services with a GST calculator
Simplify the payment method for your clients
Accepting and disbursing payment isn’t rocket science anymore, but does your client use the same payment method as you?
Today, most successful freelancers have a quick payment set up to get things started in the right direction and avoid any last-minute hick-ups.
Razorpay’s Payment Links can help freelancers or unregistered businesses with a fast settlement or alternate payment option–you can create and share Payment Links for and provide flexibility to your clients.
Also, many freelancers don’t have the technical prowess to strengthen their digital presence via websites and proper landing pages.
Well, it doesn’t matter now. Empower your business with Razorpay Payment Gateway with complete online onboarding, minimum documentation, and start transacting within 2 minutes.
Use the Razorpay ePOS App for freelancers and unregistered businesses
With this app, freelancers, homepreneurs, unregistered businesses can create payment links within minutes. They can share these links via Facebook, Instagram, WhatsApp, email, SMS and any other social media platform.
Razorpay ePOS App allows your clients to pay via any mode of their choice, like credit/debit card, net-banking, UPI, wallets and more!
Send reminders to your client
Reconciling payments for a musician who does weekend gigs in pubs and popular venues on weekends can be a significant setback if the person isn’t paid on time.
And worse, if the person has to follow up to collect payments. Believe it or not, but in some cases, cash is running the show!
With Razorpay for Unregistered business, freelancers can send timely reminders to their clients and save money to invest in their current/side venture.
Charge a late fee payment
Finally, the last option will safeguard your interests if you have made a proper freelancer contract with your employer.
No matter the size of the business or organisation, it is a widely known fact that payments can get delayed due to many reasons.
For example, If your employer is an enterprise, your payments might take time to process through their finance team.
And if you’ve delivered your tasks on time, why not receive the said amount on time?
With the current ongoing situation, it’ll be interesting to watch the real drivers of the fourth industrial revolution.
Because “The possibilities of billions of people connected by mobile devices, with unprecedented processing power, storage capacity, and access to knowledge, are unlimited.” Klaus Schwab, Founder, World Economic Forum.