Escrow for freelancers
25th May, 2022
2 mins, 30 secs read
Are you a freelancer? Are you a freelance graphic designer, Web developer, writer, or product designer? Has a client ever owed you your dues for months after rendering your service without a promise of payment? Read on to find out how escrow can protect freelancers like you from offering a free service you didn't consent to.
An escrow is a legal agreement where two transacting parties agree to hold money or valuables for a particular transaction with a trusted, neutral third party until the terms of that transaction are met.
As a freelancer, you probably offer your services and projects to clients you never meet physically as most of your services are remote. A client might promise to make a 60% upfront payment and 40% after you deliver but does not keep to their promise, or by constantly postponing the date of payment.
Even worse, there is also the risk the client might not pay all together and disappear with your creatively done Job, without the final payment. All these can negatively affect your business and income, especially if these jobs do not come often. The uncertainty of getting jobs is enough. Adding fear of not receiving payment for jobs done is not necessary.
How can you protect yourself and your skills from being exploited by selfish and corrupt clients?
Get secure payments with Escrow.
Escrow protects the integrity of transactions. The client must deposit in a reputable neutral escrow account before starting that project. This way, on completing the project, and the client is satisfied with the terms agreed upon, your money gets released instantly from escrow to your preferred account.
How can you get started?
- 1. Agree on the terms: The freelancer and client agree to the terms of the transaction. This could be; the number of items, project due date, project milestones, expectations, and specific required tools.
- 2. Create an escrow account: Both parties involved would need to create an escrow account with a reputable escrow service provider such as Pandascrow.
- 3. Create a transaction: The freelancer creates a transaction on the escrow platform and generates a unique transaction link to send to the client.
- 4. Make secure escrow payment: The client uses this link and deposits the agreed payment amount with the third party. This payment made would be held within the escrow system.
- 5. Freelancer completes the Job: Once the freelancer received payment notification, he is expected to begin, and provide all services and project requirements as stated in the agreed terms.
- 6. Client confirmation: When the client receives the service and is satisfied with your service, the client sends a confirmation to Pandascrow.
- 7. Instant Payment released: The escrow service provider (Pandascrow.) then releases the money held within its escrow system to the preferred settlement account of this freelancer. The escrow service provider deducts a small service charge, which is usually less than 5% of the total fee.
In Pandascrow, the employer or client can deposit funds either using a one-time payment method or a milestone payment transaction depending on the agreed terms.
When you submit your work, the client reviews, and approves your work after which the agreed amount is released from escrow to the freelancer’s account.
Should a dispute arise there are systems in place to resolve the issue and provide satisfaction in the experience of both parties using Pandascrow..
So, are you a freelancer in Nigeria? Are you a client in the Diaspora? Get started today, by creating a Pandascrow account to transact safely.