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Faster payouts for hourly contracts

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Active Member
Kavita S Member Since: May 7, 2020
11 of 658

Awesome News,

Thank you so much

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Francis Murimi K Member Since: Dec 12, 2019
12 of 658

Great move upwork!

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Renie Y Member Since: Jun 22, 2015
13 of 658

Thanks you upwork team.

 

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Racquel R Member Since: Feb 14, 2018
14 of 658

Thank you!

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Community Guru
Tiffany S Member Since: Jan 15, 2016
15 of 658

Heather H wrote:

Only for hourly contracts, so it is a benefit for some top-rated and agencies, not all. Those of us that are top-rated but work in a niche that is mainly fixed price see no changes. Yay, I guess. I still never understood why there is an extra holding period when escrow is pre-funded. 


Because it isn't, really. Upwork escrow is chronically underfunded and Upwork regularly transfers money from its own operating account to cover escrow shortfalls. Without the hold period, Upwork isn't just putting its own money into the escrow fund as security for those payments, but is actually paying freelancers with its own money.

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Community Guru
Jessica S Member Since: Dec 4, 2015
16 of 658

Tiffany S wrote:

Heather H wrote:

Only for hourly contracts, so it is a benefit for some top-rated and agencies, not all. Those of us that are top-rated but work in a niche that is mainly fixed price see no changes. Yay, I guess. I still never understood why there is an extra holding period when escrow is pre-funded. 


Because it isn't, really. Upwork escrow is chronically underfunded and Upwork regularly transfers money from its own operating account to cover escrow shortfalls. Without the hold period, Upwork isn't just putting its own money into the escrow fund as security for those payments, but is actually paying freelancers with its own money.


I am not sure I understand this. If the money isn't in the escrow account, a freelancer wouldn't get paid - that's why we all preach "don't do any work if it's not funded in the escrow account first".  And many freelancers have done work not funded and didn't get paid for it.  And from what I understand, if the payment doesn't go through for some reason, then they take the funds back from the freelancer. So how is escrow underfunded? I am not questioning the validity of this, I just truly don't understand how it can be underfunded... 

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Kieran B Member Since: May 4, 2016
17 of 658

Upwork is a listed company that takes $1 billion in billings every year. I wish I was that underfunded.  

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Manoj K Member Since: May 5, 2020
18 of 658
Thanks, Good Initiative!!
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Zahid M Member Since: May 5, 2020
19 of 658

Sounds good to me. Thank you upwork

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Community Guru
Tiffany S Member Since: Jan 15, 2016
20 of 658

Jessica S wrote:

I am not sure I understand this. If the money isn't in the escrow account, a freelancer wouldn't get paid - that's why we all preach "don't do any work if it's not funded in the escrow account first".  And many freelancers have done work not funded and didn't get paid for it.  And from what I understand, if the payment doesn't go through for some reason, then they take the funds back from the freelancer. So how is escrow underfunded? I am not questioning the validity of this, I just truly don't understand how it can be underfunded... 

Jessica, escrow is "funded" when the client clicks to process the payment. That is not when Upwork gets the money. Depending on the payment type and the location of the client, Upwork may receive that money in one to several days.

 

Let's pretend for purposes of illustration that there's no money in the escrow account and a client funds a $100 milestone. The amount of money Upwork is holding in escrow for you is $100. The amount of money in Upwork's escrow account is zero. Upwork regularly transfers money from it's own operating accounts into the escrow account to bridge that gap.

 

 

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