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Payments & escrow

Escrow for freelancers

Escrow for freelancers holds a client's payment in a secure account before work starts and releases it as milestones are approved. Here's how it works.

Quick answer

Escrow for freelancers is an arrangement where a client's payment is held in a secure, neutral account before work begins and released to the freelancer as agreed conditions are met. It protects both sides: the freelancer knows the money already exists, and the client knows funds are only released for work that has been delivered and approved.

On larger projects, the biggest payment risk is the gap between doing the work and getting paid for it. Escrow closes that gap by moving the money out of the client's hands and into a protected balance before the first task starts. The freelancer can begin with confidence that the funds are committed, and the client keeps the assurance that nothing is released until they sign off.

Escrow is usually paired with milestones. The project is split into stages, each with an amount attached, and the money for a stage releases only when that stage is approved. This keeps delivery and payment moving in step rather than settling everything at the end.

In KAZI, milestone escrow is built into projects: the client funds the project by card through Paystack, the funds are committed up front, and each milestone releases on approval — so there is no invoice to chase after the work is already delivered.

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FAQ

Common questions

How is escrow different from a deposit?

A deposit is paid directly to the freelancer up front. Escrow holds the money in a neutral, protected balance and only releases it to the freelancer when agreed conditions — usually milestone approvals — are met, which protects both parties rather than just one.

Is escrow worth it for small jobs?

Escrow adds the most value where real delivery risk exists: larger builds, staged projects, or a first job with a new client. For very small, quick jobs a normal invoice with a pay link is often simpler.

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