Half of UK freelancers consider quitting due to late payment struggles
36% of freelancers have resorted to payday loans as non-paying clients have left them cash poor with many owed over £5,000
Almost half of all UK freelancers have considered quitting freelance life as they continue to struggle with late payments issues with clients, according to a recent study from Ormsby Street.
The survey of 1,002 freelancers and sole-traders revealed that 46% are stressing about having enough money to live on with freelancers each owed an average of £5431 in late payments.
Incredibly, 36% of freelancers have even resorted to payday loans and 37% to getting money from friends and family for immediate finance as non-paying clients are leaving them cash-poor.
Only 19% of the freelancers surveyed said that most of their invoices are always paid on time, with freelancer invoices paid on average 18 and a half days after their due date.
Worryingly, a large number of respondents appear to feel awkward and uncomfortable about chasing for overdue payments with 57% worried that their client might not use their services again if they chased for payment.
Martin Campbell, managing director of Ormsby Street said: “Why should a freelancer waste their own billable hours chasing payment for work that has been successfully completed and is already due for payment?
“If customers are not willing to pay within the agreed terms then it’s time for freelancers to become more informed over whom they work with, and either ask for payment upfront or even choose to not work with company.”