Financial Security & Late Payments: A Persistent Challenge for Freelancers

Freelancing offers flexibility and independence, but one of the biggest ongoing struggles for independent professionals remains financial security and late payments. Many freelancers face unpredictable income due to inconsistent client payments, project delays, and the dreaded issue of client ghosting. Despite government initiatives like the Fair Payment Code (FPC), enforcement remains weak, leaving many freelancers financially vulnerable.

In this blog, we’ll explore why late payments continue to be a major problem, assess the effectiveness of initiatives like the FPC, and provide actionable strategies to help freelancers manage cash flow and ensure financial stability.

The Late Payment Epidemic

1. Freelancers and the Waiting Game

According to a report by IPSE, 2025, 71% of freelancers experienced late payments in the past year, with an increasing number of clients failing to meet agreed-upon deadlines. Many freelancers operate without the security of monthly salaries, making late payments especially detrimental.

  • Delayed payments disrupt budgeting – Many freelancers struggle to pay rent, bills, and business expenses when clients fail to pay on time.
  • Client ghosting is on the rise – A 2024 survey found that 72% of freelancers reported instances of client ghosting, where clients disappear without paying for completed work.
  • Inconsistent income leads to instability – Without predictable cash flow, freelancers face difficulties in financial planning and long-term savings.

2. The Freelance Payment Cycle

Unlike salaried employees who receive fixed monthly paychecks, freelancers often wait 30, 60, or even 90 days for client payments. Many businesses, particularly startups and small enterprises, extend payment terms to manage their own cash flow, pushing financial strain onto freelancers.

How Into Ensures Secure and Timely Payments

At Into, we recognize that freelancers deserve financial stability. That’s why we offer project-based payments, allowing businesses to compensate consultants by the hour or based on milestones. This ensures:

  • Guaranteed payments for completed and approved work.
  • No waiting on extended invoices—clients pre-fund projects to secure consultant services.
  • Secure transactions, protecting both freelancers and businesses.

Practical Steps to Manage Cash Flow & Secure Payments

Since systemic change is slow, freelancers must take proactive steps to protect their financial well-being. Here are key strategies to minimize late payment risks:

1. Use Contracts with Clear Payment Terms

A well-drafted contract should include:

  • Payment deadlines (e.g., net 15 or net 30 terms)
  • Late fees for overdue payments
  • Upfront deposits to secure work agreements

With Into.so, payment terms are embedded into every project, ensuring that freelancers and consultants get paid fairly and on time.

2. Request Upfront Payments or Milestone Payments

Asking for an initial deposit (30–50% of the total project fee) ensures freelancers receive some compensation before completing the work. For long-term projects, milestone payments break payments into stages, reducing risk. Into.so automates this process, ensuring funds are held securely and released upon completion of agreed milestones.

3. Automate Invoicing & Payment Tracking

With Into’s built-in payment system, freelancers no longer need to chase invoices or follow up on payments manually. Our platform ensures:

  • Automatic invoice generation.
  • Secure transaction tracking.
  • Instant payout upon project or milestone completion.

4. Eliminate Late Payment Hassles

Including late fees (e.g., 5% per week on overdue invoices) encourages prompt payment. While not all clients will comply, many will prioritize timely payments to avoid extra charges. With Into, freelancers don’t have to worry about delayed payments—our platform secures funds before work begins or at set milestones.

5. Work with Verified Clients

One of the biggest risks for freelancers is working with unverified clients who might delay or refuse payment. Into verifies all companies and clients, reducing the risk of non-payment and ensuring a secure work environment.

The Road to Financial Stability

While late payments remain a persistent issue, freelancers who take proactive financial measures can reduce risk and improve financial security.

Key Takeaways:

Always have a signed contract with clear payment terms.

Request upfront or milestone payments for large projects.

Automate invoices and use secure platforms like Into.

Avoid client ghosting by working with verified businesses.

Secure retainer agreements for long-term financial stability.

As freelancing continues to grow, freelancers must embrace platforms that provide security and reliability. Into ensures that professionals can focus on their work without worrying about chasing payments.