With over two million Brits currently working freelance, this is approximately £4 billion in overdue payments that freelancers may be waiting for each month.
This figure, which is 7.28 per cent of the average income of a UK freelancer (£28,821), is a frustration for freelancers across the country. According to WondaPay’s survey, 55 per cent of freelancers invoices are paid over a month late and 19 per cent of freelancers stated that they are paid over two months late for their work.
WondaPay also found that a third of the freelancers surveyed took 2-8 hours a month chasing late payments. There seems to be little hope for change in these figures amongst the freelance community. According to the survey, 88% of freelancers believed that late payments from customers have stayed the same or become worse over the past year. This means that only 12 per cent of freelancers surveyed believe they have seen an improvement in their late payments in the last 12 months.
Outstanding invoices are even making some rethink their career choice, with 24 per cent of the freelancers surveyed having considered leaving freelance work to pursue a more stable job. Not only does this shift in career affect the freelancers themselves, with them perhaps giving up a job they enjoy, but this could potentially place added pressures on businesses that rely on the work of these freelancers to work for them.
JJ Rathour of WondaPay said: “Freelancers are a valuable and integral part of the business ecosystem. Small businesses that would otherwise struggle to keep up with the financial pressure of employing full-time staff benefit from the work of freelancers, and in turn freelancers gather work.
“The issue with late payments within the freelancer community is one that needs to be talked about and solved. This problem is undeniable and unfair to a large portion of our workforce, as our research has shown. Waiting months to be paid a large sum of your hard-earned money should not be something that people have to put up with or get used to.”
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Susie Hughes © Shout99 2022