Battling the Financial Storm

19 March 2009

Following the slide of the FTSE below the psychological 4000 barrier and the much publicised crisis at LDV with 6000 workers jobs under threat, those of us who expected the economy to start righting itself this spring may be sadly mistaken. As employers cash gets tight we thought we’d focus on what you can do if you’re freelancing and having trouble extracting that well earned payment for your hard earned work.



These 5 tips won’t guarantee success, if an employer goes bust, there’s very little you can do, but they may at least remove any anguished thoughts of what you could have done differently…. Good luck!

1) Make sure your contract is in order and if necessary, get a legal once over to make sure it’s as robust as possible. Make sure it states the terms of payment on it, and remember to get the employer to sign a copy so you’ve both got something contractually binding agreed in writing. Offer an early payment discount at the outset. You’ll be amazed with how much of an incentive this is to employers. If at all possible, reduce the risk by getting paid on a weekly basis. Can you split your work into smaller billable elements rather than a final lump payment for the finished article?

2) Network, network, network. If you’re being given the run around, try and find a trusted ally within the business who can keep you in the loop of what’s happening. Find existing suppliers if necessary to understand how they are being paid. Ask the Network Freelance community if anyone’s been in the same situation, and get free advice. And remember to spread the word. Network Freelance is the only freelance community where you can leave feedback on employers. If you’ve contracted with one and you’d rather not repeat the experience, tell the community. Keep the facts though!

3) Get your mode and method of communication right from the start. In short, ditch the blackberry and go old school. Was it Charles Dunstone from CarphoneWarehouse who banned internal emails (let me know if it wasn’t as its bugging me!)? Emails are impersonal and easy to delete (see below). If you call frequently you’ll soon be on their mind. Remember to keep a log of all your correspondence. With emails it’s easy enough – just don’t delete them otherwise it’ll be your word against theirs. Try to remain courteous but firm. You do get more with sugar than with salt and it doesn’t mean you have to be a pushover.

4) Don’t factor on time payment into your cash flow. Spending before you’ve got it is a sure fire way to get you into trouble. Easier said than done I know but hold the retail rewards until you’ve got it firmly in your bank. And always, always, always keep between 10 % and 30% of your earnings aside for a dry spell (and to pay your tax, get through periods of illness etc!)

5) Get legal. The internet is awash with debt chasing online solicitors, many of whom can send out ‘stock’ debt chasing letters for you, before it all gets too serious for a nominal charge. Often this is all it takes to shake employers into action. Within 2 minutes on Google, Thomas Higgins & Nelsons Online both came up offering similar services. If you’ve used any agencies like this before and can recommend them, why not set up a thread on the forum and share the knowledge.

Author: James Birtwhistle



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