What to do as a freelancer, when a client doesn’t pay?
This is a thorny issue for freelancer’s and sole trader’s and fortunately it doesn’t happen too often. What can you do when a client doesn’t pay you?
In my instance I produced some headshots, real-life imagery and some office interior photography, for a large company which they were currently using on their website! They just didn’t respond to my calls or emails gentely telling them that I hadn’t been paid and the invoice was so and so late. I tried calling literally everyone from their website and started to wonder wheher they had actually gone under.
But, what can you do?
You can send a final email / letter claiming the amount owed and take them to the small claims court.
This is the Step by step i found
Small Claims Court
Send a Letter Before Action (LBA): This is mandatory before legal action. Send a final demand giving the debtor at least 14 days to pay. Clearly state the amount owed, the contract terms breached, and that you will start court proceedings.
File the Claim (Money Claim Online): If the deadline passes without payment, create an account on the Money Claim Online (MCOL) portal.
Claimant: You (the freelancer).
Defendant: The client (person or business).
Details: Include dates, amounts, services provided, and proof of your attempts to recover the debt.
Pay the Fee: Fees are calculated based on the claim amount and are added to the debt.
The Process: The court will serve the claim to the client. They have 14 days to respond.
If they admit the debt: You can request a judgment and get paid.
If they dispute it: The case may go to a hearing or mediation.
If they ignore it: You can request a default judgment (winning by default).
In my instance I decided on a different approach as I wondered whether the company may have gone under and thinking the above appraoch may come to nothing and may even ne too slow.
A Debt Collection Agency
Having done so research I decided to use a debt collecting agancy. A company called Darcey and Quigley, that I found online and seemed to have great credentials.
They are a regulated agency who chase the money for you; they are no win no fee based.
They do charge fees (some are set fees, some charge a percentage of the invoice)but most try to get the client who wasn’t paid to pay this fee so you do have to.
On my long standing debt which I mentioned above, the debtor were litlerally trying to call the same day that the debt collecting agency issued there intent. I was advised not to talk to that client and withinn a week they paid the collecting agency and the fee (so I don’t have to). Quite amazing.
My 2nd long standing non paying client, paid me within hours of being contacted by the collection agency. What they do I can’t exatly say, but it was amazing to get paid from someone I had literally given up on; and I belive he felt I wouldn’t pursue.
As a freelancer if you are not part of a membership or union you can feel somewhat alone and have no weight.
As a photographer, I don’t send clients terms and conditions or contracts prior to working for them. In all honesty, becacause I have never had to. Maybe something I need to change for sure.
The agency I used was Darcey and Quigley if you are interested.
I would be interested to know what issues you have had and how they were resolved.