How to Pay Freelancers Faster: Methods, Speed, Steps

Key takeaways

• Agree on clear payment terms and collect a W-9 before the work begins.
• Choose fast digital payments or ACH to pay freelancers in one or two days.
• Pay on time to protect your reputation and keep good freelancers coming back.
• Compare methods by speed and cost, since checks are slowest and cards cost more.

Freelancers carry much of the load

Late payments hit freelancers harder than companies. A business often has a cash cushion. A self-employed individual paid late may not cover their bills. This is even more overbearing for self-employed people of color who already face prevalent socioeconomic disadvantages.

Paying on time is not just fair, it protects your reputation. Reliable payment keeps good freelancers coming back, so companies should keep reviewing how they pay contractors. They must prioritize ensuring that funds are available within a reasonable time frame before hiring contractors.

Artists have bills too

In my home state of California, freelancers and contractors are the norm. Particularly in the arts and entertainment industry, many artists are not employed by one company. Rather, they are self-employed, dependent on finding the next gig to pay their rent and stay afloat.

To make matters worse, work opportunities are disappearing. During the pandemic, the Golden State saw jobs disappear across California’s creative sector, and by 2024 employment was still about 7.1% below its pre-pandemic peak, leaving entrepreneurs with fewer opportunities to support themselves. And, nationally, Brookings estimated the creative economy lost more than 2.3 million jobs early in the pandemic, though it has since rebounded to contribute over $1.1 trillion and support roughly 5.2 million jobs.

More than ever, companies that hire artists, actors, and models on a freelance basis need to be part of the change and help make freelancing a sustainable career.

How to pay a freelancer in four steps

Paying a freelancer well comes down to four simple steps.

1. Agree on payment terms up front. Settle the rate, schedule, and how quickly you will pay before the work starts.
2. Collect a W-9. Ask for tax details early so payment and filing go smoothly later.
3. Choose a payment method. Pick an option that fits your cash flow and the freelancer’s preference.
4. Pay on time. Send payment by the agreed date to keep the relationship strong.

Freelancer payment methods compared

You have a few main ways to pay a freelancer, and each fits a different need.

• ACH or direct deposit: money moves straight to their bank account, usually fast and low cost.
• Digital payment platforms: quick and convenient, with clear payment status for both sides.
• Checks: familiar but slow and manual, with more room for delays.
• Credit cards: flexible for cash flow, though fees tend to be higher.

How fast can you pay a freelancer?

Speed depends on the method you choose.

• Digital and instant payments: often land in a day or two.
• Standard bank transfers: usually take a few business days.
• Checks: can take a week or more once mailing and clearing are done.

Faster payment is not just a nicety. It shows respect for freelancers who rely on each payment to cover their bills.

Digitizing payments is better for everyone

Through fast and efficient invoicing and payment processes, business-to-business (B2B) payment solutions like Melio make digital payments the fastest way to pay freelancers, moving funds in one or two days instead of the typical net 30 to net 60 wait. Since using the platform, it has allowed us to open more doors and opportunities for creators—especially those from disadvantaged communities—to tell their stories and get their foot in the door of the industry.

With some extra research, companies may find that there is a multitude of tools available to help uplift and support creators. Even if a company is not ready to embrace new technology and move away from traditional payment methods like checks, it can at least be transparent with contractors about the time it may take to be paid for their labor.

While many companies, including my own, suffered major financial setbacks as a result of the pandemic, that should never get in the way of continued efforts to treat freelancers fairly. Together, we can make the creative sector in California—and across the country—more equitable and sustainable.

Lauren Kruz is a Melio customer and the co-founder and director of Radical Womxn, a California-based creative studio.

This article originally appeared in Campaign.

Companies need to act responsibly to support freelancers

Historically, freelancers have needed to wait months to receive a paycheck after completing a job or project due to the traditional payment structures in place at many corporations. During the pandemic, this reality was only exacerbated, leaving many freelancers financially insecure and wondering whether they would need to pivot to a different career path. It also heightened entrance barriers for others who cannot afford to wait that long to get paid.

At my company, Radical Womxn, we aim to uplift systematically excluded minority creators by prioritizing equitable production practices and providing access to resources needed to succeed in the media and creative economy. We recognized the hardships faced by freelancers and contractors. When trying to address this issue, we sought alternative ways of paying our contractors—and that started with embracing the digitization of the payments ecosystem.

Freelancer payment FAQs