Working Together Just Got Easier: Introducing Invoices & Payments on Loom
We launched Loom in 2016 with two key goals in mind: to help entrepreneurs hire talented freelancers for cash and equity, and to provide tools that make the process of getting work done easier and more efficient.
Since launch, we’ve spent hours upon hours talking to our users to understand their needs and pain points, so we can make Loom a more powerful and valuable tool.
One of the most common things we heard from employers on Loom is that paying freelancers and tracking payments can be a frustrating and time-consuming process. And Loom freelancers listed invoicing clients and reliably getting paid on time among the biggest pain points they deal with when working on a project.
After months of researching, designing, building and testing, we are extremely proud to announce the launch of Loom Invoices & Payments.
Starting today, freelancers working on Loom projects can easily create, customize and send invoices to employers through the Loom platform and receive secure payouts directly into a connected bank account.
We’ve partnered with Stripe, an industry-leader in online payments, to provide secure payment processing and payouts through the Loom platform.
Unlike other freelancing sites, employers can now easily review, track and securely pay their freelancers through the Loom platform without incurring any processing fees.
So what’s changed?
We’ve added powerful new features to Loom, and adjusted our pricing accordingly.
There is no longer a fee for employers to connect with freelancers to discuss their project. Removing this fee from the hiring process allows our users to find each other and get to to work more efficiently.
Loom service fees are now collected when a freelancer is hired, and pricing is based on the type of compensation offered to the freelancer.
For projects offering cash as all or part of the compensation, employers are now required to pay any hired freelancer through the Loom platform. Our 10% service fee is deducted from each payment made to a freelancer, then the remainder is sent securely to the freelancer’s bank account.
For equity-only projects, employers are required to pay a $500 fee to Loom per freelancer hired for the project.
As always, we’re keeping our fees low so employers can put more money into their project and freelancers will keep more of the money they worked hard to earn.
Who can use Loom Invoices & Payments?
Employers and companies from around the world can continue to post projects on Loom, as long as you keep a valid credit or debit card on file from which payments will be made to Loom freelancers.
To deliver the best possible invoicing and payment-delivery experience to Loom freelancers, we will initially support only freelancers who have a valid bank account located in the United States, Canada or United Kingdom.
We will continue to improve these features for supported users, while simultaneously working to expand the list of locations and currencies we support for freelancers on Loom.
If you’re a freelancer located outside of the United States, Canada or United Kingdom and you want to use Loom’s invoicing and payments system, please let us know by sending an email to support@loom.co. We’ll continue to prioritize our expansion efforts based on the locations of our most active, passionate and vocal users.
Using Invoices & Payments
Starting today, employers can post projects (for free, of course) specifying the type of freelancer they need to hire and outlining the scope of work to be performed. Freelancers can then submit proposals for free on any projects that interest them.
Upon receiving a proposal, employers can either respond to the freelancer with a message to continue the conversation or simply decline the proposal. When an employer responds with a message, we provide unlimited messages to discuss the project in more detail, get to know the other party and possibly setup interviews.
Employers can then choose the freelancer they want to hire and execute a work agreement directly with their chosen freelancer. We allow employers to use their own work agreements or download a free work agreement template from the Loom resources page.
When work begins, freelancers can quickly and easily send invoices to their employer through the Loom dashboard.
We recommend that freelancers invoice employers weekly or bi-monthly so all parties are continually aligned and able to track the work performed, the amount of money owed and payment due dates.
We notify employers when they receive invoices and when their invoices are due to be paid. Employers pay invoices through Loom and the funds are securely sent to the freelancer’s verified bank account.
What’s next?
We’re working hard to build more valuable features for our users, and even expand the types of freelancers that can land exciting and interesting projects on Loom in exchange for both cash and equity.
For more detailed information on these updates, please reference our How It Works page and the Loom Support Center for answers to commonly asked questions about Loom Invoices and Payments.
And of course, if you have feedback, we would love to hear it. Please send us an email to support@loom.co and we’ll get back to you quickly.
On behalf of the entire Loom team, I want to say thank you to our passionate and creative community for the continued support. It means the world to us.
Josh Mantooth
User Experience Lead, Loom
