Contracts, Invoices and Getting Paid on Time

One of freelancers’ biggest money problems isn’t finding work - it’s getting paid. Late or missing payments can wreck a budget.

Put it in writing

A simple contract or written agreement should cover:

• Scope: exactly what you will deliver.
• Timeline and milestones.
• Price and payment schedule.
• Revisions: how many are included.
• Ownership: when intellectual property passes to the client, usually after payment.
• Cancellation terms.
• Late payment consequences.

Even an email confirming these points is better than nothing.

Ask for an advance

Many freelancers ask for 30 to 50 percent upfront, especially with new clients. This commits the client and covers early work. For larger projects, use milestone payments.

Professional invoices

An invoice should include:

• Your name, address, PAN and GST number if registered.
• The client’s details.
• A unique invoice number and date.
• Description of work, amount and taxes.
• Payment terms, such as “due within 15 days”.
• Bank details or payment link.

Chasing late payments

• Send polite reminders before and after the due date.
• Pause further work until overdue invoices are paid.
• Keep all communication in writing.

Legal protections

If you register as a micro or small enterprise on Udyam, the MSMED Act requires buyers to pay within 45 days where agreed, and delayed payments attract compound interest. You can file complaints on the government’s MSME Samadhaan portal.

Red flags

• Clients who refuse any advance.
• Vague scope or constantly changing requirements.
• Requests for “free samples” of large work.