Increase Cash Flow: How to Get Paid On Time as a Freelancer

Tired of having cash flow issues? Want to find ways to get paid on time for your freelance work? This post covers 5 tricks and tips to help you get paid what you deserve.

October’s theme here on the blog is dedicated to Loving Your Freelance Finances. In part one I talked about how to stop hating your finances so you can get back to a positive place again.

In part two, I explained the exact formula for paying yourself as a freelance business owner. Today I’m wrapping everything up in part three, which is all about getting paid on time.

These are the three key things that have helped me stop hating my freelance finances and start loving my money again. Obviously, getting paid for the work you do is a huge part of that, but more importantly you need to get paid on time.

Nothing is more frustrating to a growing business than not having the cash flow you need to pay the bills, buy much-needed equipment or have the money to invest in yourself.

This is a personal pet peeve of mine when working with clients. If they aren’t willing to pay a small deposit up-front, or pay invoices within the net term period, I won’t continue working with them.

I understand the way I run my business is not their priority, however, not paying the people you work with on time is a very selfish way to do business. Here’s how to increase your cash flow and get paid on time as a freelancer.

1. Do you have a cash flow problem?

It’s not always the most interesting of subjects, but as a freelance business owner you’re responsible for the success (or failure) of your business ventures. And this means cash flow. It’s important to know the basics, and how you stack up.

Don’t worry, it’s relatively simple! Cash inflow refers to money coming into the business, and cash outflow is money going out.

There are 3 different types of cash flow:

  • Operational Cash Flow. This refers to any activities related to money coming into the business, through products sales, services, etc., as well as expenses spent on behalf of the biz. This also includes paying yourself a regular salary, which is then paid out for personal bills and other expenditures that keep your business and personal ventures afloat.
  • Investment Cash Flow. As you can probably guess, investment cash flow comes from cash received, or spent, through investing activities. Any equipment or assets you purchase to grow or expand your business, or sell in the future, will fall into this category.
  • Financing Cash Flow. This last form of cash flow can be a dangerous one. It’s anything related to leveraging debt (like buying an office space, or personal loans) as well as payments made on those debts. When you can’t repay your debts, then your business enters into a Cash Flow Crunch stage, which can lead to bankruptcy if you aren’t able to turn the situation around.

Now that you have an idea of the different types of cash flow, you can start figuring out what type of income problem you have. Taking inventory of where your business is at, and finding out how to increase cash flow is the first step towards success!

In the past, I shared that the major problem with my freelance business was an operational cash flow issues, or rather, an income problem not a spending problem.

Do you have a cash flow problem? What kind of cash flow issue do you have? Do you need to invest into your business? Are you using too much financing cash flow (or debt) to keep things afloat?

Now that you know the answer to your cash inflow problem, you can use these next steps to increase the amount of money coming into your business.

2. Are your invoices clearly spelled out?

The first step to getting paid on time is sending out professional, clean, and easy-to-read invoices (duh!). I mean, do you really think your clients will pay you on time without a prompt from an invoice?

It doesn’t have to be anything fancy, but something as simple as a free invoice template created in Microsoft Word, Google Docs or Invoice Home, is a great place to start. If you want something a bit more in-depth, you can use this free invoicing template from FreshBooks.

I have personally used FreshBooks for several years and love the fact that it automatically sends a payment reminder if a client hasn’t paid within 15 days. It keeps me from having to follow up, but reminds the client I don’t work for free!

You can also send a simple invoice straight from your PayPal account, although you’ll have to pay higher fees to receive payment.

However you create your invoice, make sure it includes these important details.

  • A professional header
  • The client’s contact info
  • Project/invoice details
  • Detailed description of services
  • Updated payment address and email

If this is your first time creating an invoice, check out this detailed guide I wrote for The Write Life, on how to create your first invoice as a freelancer.


An additional vital step is to use a service that creates recurring invoices so you don’t have to create them manually. This will save you time, headache, and make sure you don’t forget to invoice someone (yes, that’s happened to me before).

FreshBooks has this as a feature which you can access by clicking on Invoices —> Recurring —> Create a Recurring Profile. If you don’t want to use FreshBooks, something as simple as a copied template could work too.

The point is to simplify your invoicing process so you still get paid without having to spend a lot of your precious time.

3. How often are you billing clients?

I recently asked how often the members of the Careful Cents Club send invoices to their clients and I received some surprising answers. Most of them were very much against the idea of billing clients on a weekly or bi-monthly basis and instead only send out invoices once-a-month.

But how is that maximizing cash flow?

You have to be REALLY disciplined to stretch your money out over the entire month and stick to a budget, while hoping your clients pay you on time at the beginning of the next month. This logic just didn’t make sense to me, so I decided to experiment.

Since earlier this year I’ve started invoicing my freelance clients on the 1st and the 15th. (This was prompted because a new client requested this and I thought it could be good to implement across the board.)

I haven’t had cash flow issues AT ALL, since then. No taking money out of savings to cover a transfer, and no stressing out when I needed to pay my rent. It’s been a huge game-changer for my bank account, and something that’s enabled me to get off the financial roller coaster.

I’m not the only one who thinks this idea is best for freelancers. In the definitive guide to getting paid as a freelancer, Brennan Dunn talks about strategies that help you get more money in your pocket. And his second tip on the list is to invoice more frequently — at least once a week!

“When I was first starting out, I invoiced twice a month. However, you should invoice as frequently as you can — preferably once a week. The shorter the loop between sending out an invoice and getting paid, the better. If you’re working on NET 30 terms (meaning: the client has 30 days to pay your invoice) and you invoice once a month, you’re looking at upwards of 60 days (2 months!) before getting paid for your time. This is less than ideal, especially since many of us don’t have the cash flow to support that.” — Brennan Dunn

HA. See? I wasn’t even suggesting invoicing once-a-week, but that’s a smart idea too!

Brennan has over a decade of experience building his own freelance agency and brings in thousands of dollars each month. If you don’t want to take my advice, then I hope you’ll consider his.

Not sure it will work for your business? Don’t think clients will agree to pay more often? Give it a try and see what happens. What have you got to lose?

Since doing this experiment I’ve noticed that clients like being billed more often because it works better for their budget too. It’s a lot easier to pay an invoice that’s $100 each week, than to shell out $500 at the beginning of each month (during the same time other bills are due).

Makes sense doesn’t it?!

business systems for client work

4. Do you have multiple payment options?

Should clients pay you via PayPal? Do you accepts checks or direct deposits? Do you have a way to accept credit cards? Do you allow payments to be split into installments?

In other words, to increase cash flow and get paid on time you need to offer multiple payment options that are most convenient for your clients. And even though it may come with a small convenience fee, credit cards have been proven to increase how quickly you get paid, and the amount of overall sales.

In fact, 52% of those surveyed made at least $1,000 more a month by offering credit cards as a payment option. I accept credit cards, PayPal, WePay, FreshBooks and even the occasional paper check, but there are lots of other payment options available.

  • Credit cards via Stripe, or Square
  • PayPal bank transfers or credit cards
  • WePay, FreshBooks and other third parties
  • Paper checks or direct deposit
  • Mobile pay via apps

If a client requests a particular payment method, consider the options of time + cost if you decide to offer it to them, or what happens if you pass up this opportunity.

The key to this step is setting expectations for both you and your clients to follow. Be up-front with what you require to do business, how you want to get paid and what happens if you’re not paid on time.

5. Are you enforcing a payment process?

Which brings me to my last point. Aside from how to get paid, every potential and current client of mine knows exactly when I send out invoices, and what happens if they fail to comply.

Why? Because I created a Google Doc that outlines every detail for them and is integrated into the contract we sign before working together.

It also includes the fact that I won’t continue working for them if I don’t get paid in a timely fashion. Of course I do give everyone a grace period, but if a client continues to be late on payments, I will cancel the contract.

This should be one of your non-negotiables, because as a biz owners we don’t have time to chase down payments owed to us, especially when there are literally hundreds (and maybe even thousands) of other clients we can work with.

Don't settle, freelance work is abundant.

You’re only as good as the systems you create and actually follow! So whether you have a system for sending out invoices, or an e-commerce business that sells products, you have to outline the exact process for getting paid.

If you sell digital products, there are simple services like Ejunkie, Gumroad, or Shopify, that make it easy (and inexpensive) to get paid before delivering the product.

I do this with my biz coaching sessions; if you want to get the link to schedule a time on my calendar, you’ll be prompted to pay an invoice from PayPal first. This is only fair to the other clients who need calendar slots — so if you don’t pay, then you don’t get a premium time slot.

How to get paid on time as a freelancer

Answering these questions will help you increase cash flow each month and maybe even allow you to start socking away money into your savings account. (Imagine that!)

To sum it up, here’s how to get paid on time as a freelancer:

  • Identify whether or not you have a cash flow issue
  • Make sure your invoices are clear, concise and error free
  • Bill out invoices regularly and more frequently
  • Offer discounts to clients who pay within the first few days
  • Set earlier deadlines so you don’t have to wait 60 days
  • Use an automated payment reminder system to follow-up
  • Offer multiple payment options for every client
  • Enforce a payment process if you don’t get paid on time

Now it’s your turn! I want to hear how you plan to increase your cash flow and enforce getting paid on time. Is there a system or method you already use? Or are you planning to implement one of the steps listed here?

What action are you taking THIS WEEK to put more money in your bank account? Care to join me on the experiment of billing clients twice a month, or maybe even every week? I’d love to hear your experience and how it’s worked/hasn’t worked for you.


This post was underwritten by Citizens Bank (which means the content is written by me and approved by the sponsor). All opinions are my own, and was no way influenced by any brand. I only share content or products that I personally use or find helpful.
What No One Tells You About Being Self-Employed
How to Pay Yourself as a Freelance Business Owner (the Exact Formula)


  1. Melanie says:

    This is a fantastic post! I plan on boosting my income in 2015 by increasing my rates and getting better paying clients. I do have one client that pays me weekly and that is nice! I think maybe I’ll see about getting paid twice a month from some people. Cash flow is an issue for sure, and this would help!

  2. Kayla says:

    I’d like to do mine twice monthly, but for some reason the majority of my clients prefer monthly. Luckily, this is not my only source of income or I’d probably have operational cash flow issues too. I do have a few clients that prefer to pay per item, so sometimes they are paying me multiple times in the same week. I try to do what works best for them and for me.

    • Carrie says:

      I think that’s a smart approach, Kayla. I’m doing this because many of my client prefer it (or asked for it), so that works out. But I think it’s important to meet in the middle with what works best for the client AND you!

  3. Carrie says:

    My official payment date for clients is NET15 so payment is due within 15 days or they will start receiving payment reminders. But for the most part, billing twice monthly does constitute a pretty immediate payment so they don’t get behind and have 2-3 invoices that are outstanding at once. It’s a psychological strategy that works well!

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