How Can Freelancers Get Paid On Time, Every Time?

In the years before I co-founded Masthead, I was a full-time freelancer—a career move that, like waiting tables, I recommend everyone try at least once. Hustling to get new gigs, managing my own workload, and occasionally having to fight for the right to get paid made me a lot more sensitive to the needs and struggles of contractors. It can ignite stress and anxiety when bills pile up and you aren’t sure when the client’s payments will come through.

At our company, we commit to paying our freelancers on time, regardless of whether or not our clients have paid us. It’s only fair to stick with your agreement—and yet, far too many self-employed workers deal with delayed or missing payments on an ongoing basis.

Late payments are one of the biggest freelancer complaints. In fact, a recent Independent Economy Council survey of 416 professionals who earn the majority of their wages from 1099 work found that 74 percent of respondents said they’re not getting paid on time.

In other words, freelancers are invoicing their clients and expecting them to pay within a certain timeframe, but that “pay by” or net 60 date comes and goes without funds landing in their accounts. To me, that’s unacceptable, but freelancers just don’t have quite as much leverage as a larger business when it comes to securing their payments. 

That doesn’t mean that you have to accept your money trickling in on someone else’s schedule or occasionally dealing with a client who’s ghosted you altogether. You actually have a lot of tools in your arsenal to ensure you stay ahead of client payments.

Before we start playing around with those, however, let’s take a look at why some freelancers don’t get timely payments in the first place. 

Why Freelancers Don’t Get Paid On Time

Here are a few reasons why freelancers could be running into payment issues with their clients:

Payment Terms Are Murky

If a freelancer uses informal agreements or hasn’t established payment guidelines in their onboarding paperwork, it can cause confusion around payment deadlines. Send an invoice that doesn’t share your preferred payment methods or when you expect to get paid? It might take a while. 

Invoicing is Sporadic and Disorganized

Some freelancers admit that they hate sending invoices or forget to do it. We get it—that’s not why you became a freelancer! If this describes your blind spots, block out time for that week’s invoices to be sent out. Then, note on your invoicing system the date it was sent and the payment terms. Freelancer Diana Kelly Levey shares 10 components freelance invoices should always include in this post.

You Aren’t Being Assertive

I get it, asking your manager about your payment can feel awkward. It’s not unusual for freelancers to hesitate to chase down invoices out of fear of seeming desperate, unprofessional, or not getting future work. That being said, you’re a business and you should get paid as one. Don’t be embarrassed to politely and professionally ask for what you’re owed. 

Clients Are Forgetful
Just as some freelancers don’t prioritize or love dealing with invoicing, their clients may dislike or avoid the process, too. Or, the client’s onboarding system for freelancers is clunky, and paperwork keeps falling through the cracks along the way. Some clients simply forget about the payment agreements established and pay whenever they want to or remember. That’s why having reminders sent automatically from your invoicing software can help (see more on this below).

The Client Has Cash Flow Issues

The only thing scarier than a delayed payment is nonpayment. When you’re working with a new client, you won’t know if they actually are going to pay you like they promised until well, the pay hits your accounts. (I think every freelancer experiences feelings of trepidation about this at times.) If your client doesn’t have the funds to pay you, they might delay your freelance invoice payment, ignore you, or tell you that you’re going to have to wait. 

I have personally heard from a well-known, well-funded startup that they were delaying payments to vendors/freelancers to make their cash flow look better to investors. Beyond shocking me (who says this out loud?), it made me realize I wasn’t crazy to think that payments are sometimes delayed on purpose. It happens! 

Now, the trick is to get ahead—way ahead—of delayed payments so you can keep your own cash flowing in the right direction. Here’s how. 

How Freelancers Can Ensure They Get Paid On Time

Here are strategies freelancers can use to protect themselves and establish a system for timely payments:

1. Use Strong Contracts

Contracts establish clear expectations for both parties and serve as a legal safeguard. If you don’t already have a contract in place, I highly recommend using a resource like LegalZoom, Fiverr Workspace, or ChatGPT to draft a baseline agreement for you to use. Never accept work from a client that won’t use a contract—either yours or theirs. 

Take action: In your agreement’s Statement of Work, make sure to include payment terms, deadlines, late fees, and penalties for non-payment. Also, ensure agreements are signed, dated, and saved in appropriate client folders you can refer back to if needed.

2. Set Clear Payment Terms and Negotiate the Net

Just like you need a due date to complete and turn in your work, your client needs a date that they agree to pay for those services. Ambiguity leads to delays.

Take action:  Add terms like "Net 15" or "Net 30" (payment due 15 or 30 days after invoice receipt) on the invoice to ensure the client is aware of when you expect to be paid. (Keep it to 60 days or fewer, or you’ll be waiting a long time.) Sometimes, the freelance client already has these payment terms in place for the company. If those don’t match up with your expectations, work with the manager to negotiate better payment timing.

3. Get the Names of Accounting Employees

Make sure you have the point person’s name, email, and phone number who handles the invoicing and payments. It’ll help you bypass your editor or manager, so you don’t have to pester them with the business details. This is also helpful should your main contact leave the company and you need to get paid.

Take action: Gather these details as part of your client onboarding process if they aren’t on the invoicing templates already. It never hurts to ask your client if there’s an accounting employee you could follow up with in the future should you have questions. 

4. Request Upfront Deposits

Some freelancers require upfront payments in order to kick off the project. This ensures the freelancer gets paid before any work is done, minimizing their risk and helping with cash flow for expenses they might incur as they work. 

Take action: Let new clients know that you require 25 to 50 percent of the project fee before starting work. Make sure they agree to it before a kickoff call. For ongoing clients, request a retainer monthly model with minimum rate amounts. Then, set up automatic invoicing and payments.

5. Automate and Track Invoices with Software

Automated invoices help ensure clients receive timely reminders. Note each client’s “net pay” period (the number of days they have to pay) in your files so you have an idea of how soon to expect payment after sending your freelance invoice.

Take action: Use tools like Harlow, QuickBooks (Masthead’s preferred software), FreshBooks, Wingspan, Hopscotch, InvoiceBerry, and other invoice software for freelancers to generate professional invoices with due dates, automated reminders, dashboards of unpaid invoices, and simple bill pay options.

6. Add Late Payment Fees

Why: Consequences motivate clients to pay on time. Freelance writer Wudan Yan wrote about her request for late fees from freelance clients in an essay that went viral a few years ago.

Take action: Include a clause in your contract detailing late fees if invoices aren’t paid according to your terms. It might be 5 to 10% of the initial fee per month of overdue balance. Credit card companies run businesses and charge late fees. A mortgage company’s grace period is 15 days before they add a fee to a due bill. Why shouldn’t freelancers tack these on, too?
7. Stay On Top of Invoicing

When a freelancer doesn’t send their invoices in a timely manner, it hurts their business and can make the process more challenging for the client. Sending an invoice six months after you turned in work might cause some snags in their system.

Take action: I get that business admin isn’t the most creative work you’ll be doing as a freelancer, but it’s a crucial part of your business. Take yourself and your craft seriously by sending invoices to clients soon after work is completed. Put reminders in your calendar twice a month to note which payments have been posted, which are coming in soon, and if some are already delayed. It’s much easier to get invoicing woes resolved when the work was completed recently and you’re following up in a timely manner.

8. Maintain a Cash Flow Buffer

No matter how well-oiled your invoicing machine is primed to run, delays are likely to happen. An admin forgot to process your W-9. A bank number was typed in incorrectly, or an invoice got stuck in a spam folder. It’s very likely you’ll encounter one of these types of issues—and others—in your freelance career.

Take action: Save three to six months’ worth of living expenses to reduce the stress of late payments. You’ll sleep better at night. I promise.

By staying on top of your freelance business' accounting, you should be able to ensure that you get paid in a timely manner every time. So you'll spend less time stalking your mailbox for a check or your bank account for that direct deposit payment and more time growing your business.