Dealing with Late Payments when freelancing - Ellie Stamouli shares her experience.

I've been self-employed for five years after spending seven years in-house. During this time, I’ve been fortunate to work with great clients, so the issue of late payments has only rarely occurred.

Having worked in large companies, I understand how easily payments can be delayed or pushed down the priority list.

Usually, a gentle reminder does the trick, but when I realise a payment is significantly overdue, I get nervous.

As the majority of our projects are conducted remotely, there’s always a concern that a client might simply disappear without paying their last invoice.

This would mean a lot of time and hard work has been wasted. As someone who takes pride in their work, I would hate for this to happen.

When I realise a payment is significantly overdue, I get nervous.

While I’ve been fortunate not to face any cash flow issues personally so far, I’m aware that many self-employed individuals are severely impacted by late payments.

Being self-employed already comes with inherent instability in terms of income frequency and amount.

When an invoice that’s already been factored into finances isn’t paid on time, it adds an extra layer of uncertainty that can significantly affect one’s well-being.

Discovering an overdue payment

I recently discovered that several invoices from a client were overdue.

Somehow, being busy, I hadn’t had the chance to check payments for a few weeks, so it was only when I reviewed my accounts that I noticed.

Naturally, I was frustrated that the client had allowed it to go this far.

However, given our good relationship and their previous punctuality with payments, I felt somewhat reassured.

Still, I wanted to make it clear that this wasn’t acceptable — not just for me, but for other freelancers who might be affected in the future.

I really value community, and late payments have been a recurring topic of discussion over the years in the self-employed professional communities I belong to.

Hearing others’ experiences and solutions allowed me to become familiar with the issue across industries.

I had bookmarked the Guide for Late Payments by Freelancing Support when I first came across it and I was inspired to use it in this situation.

There is no shame in chasing a payment you are legally entitled to. In fact, it’s the client who is failing to meet the agreed terms.

Following the guide, I calculated the total amount due, including a flat debt recovery fee and interest for the days each invoice was overdue.

I then raised an invoice for these amounts and contacted the billing team, explaining the delay and my rights.

This experience also prompted me to establish a late payments policy for my agency, which reflects the protections offered under UK law.

Fortunately, my primary contact at the business, who was cc’d on the email, was supportive and helped chase the payment internally. I was also pleased that the billing department agreed to pay the additional charges without much resistance.

While the extra amount wasn’t substantial, it was empowering to go through this process and hold the business accountable, just as I hold myself accountable for the quality of work I deliver.

Prevention is better than cure

The best way to protect yourself from late payments is to regularly check your invoice due dates and ensure corresponding payments are made on time.

If you can’t do this manually often, see if your invoicing system offers automated reminders for invoices.

However, if you do find yourself dealing with a late payment, I advise remaining polite but firm in requesting what you are owed. You can also explain the impact of the delay on your business, though you don’t have to.

In any case, there is no shame in chasing a payment you are legally entitled to, based on an agreement both you and the client have signed. In fact, it’s the client who is failing to meet the agreed terms.

The more we, as self-employed individuals, hold businesses accountable, the more stress-free it will be for everyone to conduct business in our respective industries. Let’s all be part of the change!