Egads, how many times have I heard stories where there’s a consultant or freelancer who’s struggling with invoicing on a project — and hasn’t got a contract or deposit? In fact, usually, when I hear someone has run into payment troubles, it’s usually when there’s no written contract or deposit.
If you’re doing work without a written contract or a deposit, stop that! Stop that right now!
Start treating your business like a business. Sure, verbal contracts are enforceable in many places. But that doesn’t make it easy to enforce a verbal contract. Moreover, if you haven’t got stuff written down, how will you remember the expectations and conditions later, especially when it’s time to get paid? Get a contract in place!
And, wherever possible, get a deposit. Deposits provide a huge number of advantages. And clients may take you more seriously if you ask for money up front.
These are just suggestions, of course. Talk to a lawyer if you want legal advice. Talk to an accountant for financial advice. But, from the hard-won experience of this consultant, you should really get contracts and deposits in place before starting any project.
When working off of grant money, it is normally paid in arrears. Can get a contract but payment is slow and deposits are out of the question.