Advance Payments, Milestones, and Payment Flow: Everything You Need to Know
This article explains the payment process for both fixed and hourly projects, focusing on how milestones and advance payments ensure security for freelancers and clients. For fixed projects, milestones allow clients to break down payments based on project stages, while hourly projects follow a straightforward payout structure. Additionally, we highlight the advance payments feature. Funds are securely held until the freelancer completes the work and the client approves it, ensuring trust and transparency in every transaction. Fixed and Hourly Projects: Payment Rules Hourly Projects: Fixed Projects: For fixed projects, we’ve implemented milestones to help manage payments and progress. Here’s how it works: Example: For a project worth $110, you can create two milestones, as long as each milestone is worth at least $50. Possible combinations could be: Advance Payment Policy: Why and How It Works To ensure a safe and secure experience for both clients and freelancers, we allow the freelancer to request for advance payments. This approach serves the following purposes: Advance payment can be requested in multiple ways The freelancer can ask for advance payment for the entire project, or only few milestones. For Fixed Projects: If your fixed project has multiple milestones & the freelancer requested advance for the first milestone, we will collect the first milestone payment in advance. If your project has no milestones & the freelancer has requested advance payment: the entire project amount will be paid in advance. If your project has multiple milestones & the freelancer has requested advance payment for one or more milestones but not the first milestone: Important Note: We do not transfer the funds to the freelancer immediately. The advance payment is held securely until the freelancer completes the work and it is approved by the client. Tip for clients: If your project budget exceeds $100, it’s advisable to use milestones. This way, you don’t need to pay the full amount upfront, and payments can be made progressively as each milestone is completed.
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