Getting Paid as a Freelancer Made Simple
TL;DR:
- Bank transfers, PayPal, and payment platforms like Stripe are your main options for receiving payments
- Proper invoicing with clear service details and payment terms speeds up the process
- Solid contracts prevent payment disputes and set clear expectations
- Upfront deposits (typically 20-50%) protect you from non-payment risks
- Clear documentation and communication solve most payment issues before they start
Getting paid shouldn't be the hardest part of freelancing, but it often feels that way when you're starting out. Here's how to set up a payment system that works for both you and your clients.
Payment Methods That Actually Work
You've got three main routes for getting money from clients into your account:
Bank transfers are the most straightforward option. Your client sends money directly from their account to yours. No fees on your end, and the money usually arrives within a day or two. The downside? Some clients find it a bit formal or worry about sharing banking details.
PayPal remains popular because most people already have an account. It's quick, familiar, and offers some buyer protection that clients appreciate. You'll pay around 2.9% plus a small fixed fee per transaction, but that's often worth it for the convenience.
Other platforms like Stripe, Wise, or even newer options like Revolut Business can work well depending on your situation. Stripe is particularly good if you're sending professional invoices, while Wise works brilliantly for international clients.
Invoicing That Gets Results
Your invoice does more than ask for money. It's a professional record of what you've delivered and what you're owed.
Include these basics every time:
- Exactly what services you provided
- When you did the work
- How much you're charging
- When payment is due
Be specific about the services. Instead of "website work," write "Homepage redesign including mobile responsive layout and contact form setup." Clients pay faster when they can see exactly what they're getting for their money.
Set clear payment terms upfront. "Due upon receipt" works for smaller amounts, while "Net 30 days" gives clients breathing room for larger invoices. Whatever you choose, stick to it consistently.
Contracts That Prevent Problems
A good contract isn't about being difficult. It's about making sure everyone knows what to expect.
Your payment section should cover:
- Total project cost and payment schedule
- What happens if payments are late
- How you handle changes to the original scope
For longer projects, break payments into milestones rather than waiting until the end. Getting paid after each phase keeps your cash flow steady and gives both sides regular check-in points.
Why Deposits Make Sense
Asking for money upfront might feel awkward at first, but it's standard practice for good reason. A deposit shows your client is serious about the project and gives you financial protection if things go wrong.
Most freelancers ask for 20-50% upfront, depending on the project size and timeline. For a week-long project, 20% works fine. For something taking two months, 50% makes more sense.
Frame it as protecting both sides. You can start work knowing you'll definitely get paid something, while your client gets priority on your schedule.
When Payments Go Wrong
Even with good systems, payments sometimes get delayed. Here's how to handle it:
Follow up professionally but persistently. Send a polite reminder a few days after the due date, then escalate gradually if needed.
Keep records of everything. Save all emails, contracts, and proof of work delivered. This documentation usually resolves disputes quickly.
Consider your options early. If a client consistently pays late, you might require full payment upfront for future work, or simply stop working with them.
FAQs
How long should I wait for payment after sending an invoice?
This depends on your agreed terms. "Due upon receipt" means payment should arrive within a few days, while "Net 30" gives clients a full month. Most freelancers follow up within a week of any missed deadline.
Should I charge fees for using payment platforms?
Many freelancers build platform fees into their rates rather than charging them separately. If you do pass fees to clients, make this clear upfront in your contract.
What's the best way to handle international payments?
Wise (formerly TransferWise) often works out cheaper than PayPal for international transfers. Some freelancers also use Payoneer or ask for payment in their local currency to avoid conversion fees.
Jargon Buster
Net 30/60/90: Payment terms meaning the client has 30, 60, or 90 days from the invoice date to pay
Payment gateway: The service that processes the actual money transfer (like Stripe or PayPal)
Milestone payments: Breaking project payments into stages rather than paying everything at the end
Late payment penalties: Additional charges applied when clients pay after the agreed deadline
Wrap-up
Getting paid consistently comes down to clear systems and good communication. Set your payment methods early, write detailed invoices, and don't be afraid to ask for deposits. Most payment problems happen because expectations weren't clear from the start, not because clients don't want to pay.
The time you spend setting up proper payment processes pays for itself quickly. You'll spend less time chasing money and more time doing the work you actually enjoy.
Ready to level up your freelance business skills? Join Pixelhaze Academy for more practical guides on running a successful creative business.