How to vet a client before you work for them

Why vetting matters

The best way to avoid chasing late payments is to not work with bad payers in the first place. That sounds obvious, but most freelancers skip this step entirely. They get a lead, agree a price, start working, and then spend weeks or months trying to get paid.

When you send an invoice with 30-day terms, you are effectively giving that client an interest-free loan for a month. You would not lend money to a stranger without doing some basic checks. Invoicing works the same way.

The good news is that most of these checks are free, take less than five minutes, and can tell you a lot about whether a company is likely to pay on time.

Free checks on Companies House

Companies House is your first stop. Every limited company in the UK is registered there, and all the information is free to access. Here is what to look at:

Payment practices data

Since 2017, large UK companies (those with more than 500 employees) have been required to publish their payment practices and performance twice a year. This data is publicly available and tells you exactly how quickly a company pays its suppliers.

You can access this data through the GOV.UK payment practices checker, or use PennyFetch's Payment Checker tool, which pulls the same government data in a cleaner format.

The data shows:

• Average number of days to pay an invoice.
• Percentage of invoices paid within 30 days, 31 to 60 days, and over 60 days.
• Percentage of invoices not paid within agreed terms.
• Whether the company offers supply chain finance or has changed its payment terms.

If a large company pays 60% of invoices late and takes an average of 55 days to pay, you know what to expect. You can either decline the work, ask for a deposit, or price your quote to account for the delayed payment.

Red flags to watch for

Here are the warning signs that should make you think twice before accepting work:

• Newly incorporated: companies less than a year old have no track record. Require a deposit.
• Dormant or overdue accounts: if Companies House shows dormant accounts or overdue filings, proceed with caution.
• Frequent director changes: more than two or three director changes in a year is unusual and often indicates problems.
• Many charges registered: heavy borrowing can mean the company is overleveraged.
• County Court judgments (CCJs): any CCJ means a creditor had to take them to court to get paid. Multiple CCJs is a very strong warning.
• Reluctance to sign a contract: if a client pushes back on having a written agreement, that is a red flag. Legitimate businesses expect contracts.
• Vague about payment terms: if they avoid discussing when and how they will pay, expect problems.
• Unusually long payment terms: 90 or 120-day terms suggest a company that uses supplier credit as a financing strategy. Read the payment terms guide for more on this.
• Bad reviews from other freelancers: check forums, freelancer communities, and social media for complaints.

No single red flag is necessarily a dealbreaker. But if you spot two or three of these for the same client, either ask for full payment upfront or walk away.

Checking for County Court judgments

A County Court judgment (CCJ) is registered when a court rules that a person or company owes money and has not paid. CCJs are recorded on the Register of Judgments, Orders and Fines and stay there for six years unless the debt is paid within one month of the judgment.

You can search the register at TrustOnline.org.uk (operated by the Registry Trust). A search costs around £6 and covers England and Wales. You can search by company name, individual name, or address.

If your potential client has CCJs against them, it means other suppliers have already had to go to court to get paid. This is one of the strongest indicators of a bad payer and should be treated very seriously.

Checking reviews and reputation

Beyond official records, it is worth spending a few minutes checking the client's reputation online:

• Google the company name plus “not paid” or “late payment”: you would be surprised how often this turns up results.
• Check freelancer forums and communities: sites like the IPSE community, Reddit freelance subreddits, and industry-specific forums often have discussions about problematic clients.
• Look at their Glassdoor and Indeed reviews: unhappy employees often mention financial problems, late pay, or cost-cutting that can affect suppliers too.
• Check LinkedIn: does the company look established? Do the people you are dealing with have a credible professional history?
• Trustpilot and Google Reviews: while these are mostly from customers rather than suppliers, patterns of complaints about service or communication can indicate a poorly run business.

Asking for trade references

If you are about to take on a large project with a new client, it is perfectly reasonable to ask for trade references. This means asking the client for contact details of other suppliers or freelancers they have worked with, so you can check whether they pay on time.

This is standard practice in B2B relationships and any legitimate client will not object. If they refuse or are evasive, treat that as another red flag.

When contacting references, ask two simple questions:

1. Did the company pay your invoices within the agreed terms?
2. Would you work with them again?

Requiring deposits for new clients

The single most effective way to protect yourself is to require a deposit before starting work. This is standard practice across almost every freelance sector and is not unusual or unreasonable.

Common deposit structures:

• 30% to 50% upfront: the most common approach for project work. The remaining balance is invoiced on completion.
• Milestone payments: split the project into phases, with payment due at each milestone before the next phase starts.
• 100% upfront for small jobs: for quick projects under a few hundred pounds, full payment upfront is reasonable.
• Retainer in advance: for ongoing work, invoice monthly in advance rather than in arrears. See the retainer contracts guide.

If a client refuses to pay a deposit, that tells you something important. It either means they do not have the cash, or they do not trust you enough to pay upfront. Either way, proceeding without any upfront payment from a brand-new client is risky.