Business cash placement: a strategic lever too often overlooked

When your business generates surplus cash, letting it sit idle in a current account is effectively losing money. Yet many small businesses, freelancers and sole traders hesitate to take action, due to a lack of simple, flexible and accessible solutions.

Good news: this strategic lever is no longer reserved for large companies. Cash placement is now far more accessible thanks to a modern, flexible alternative. Here's what you need to know.

But before you get started, read our article to learn everything you need to know about working as a freelancer.

Sommaire

1. What is being a freelancer?
2. What is a freelance contract?
3. Is a written freelance contract necessary?
4. Essential elements to include in a freelance contract
5. Four key clauses to know before drafting a freelance contract
6. Responsibilities of each party under a freelance contract
7. Our advice for drafting a freelance contract
8. FAQ

What is being a freelancer?

A freelancer is a person who carries out their activity independently, without any hierarchical link to an employer. Specifically, this means they:

• Work on their own account
• Choose their clients
• Set their own rates
• Organise their schedule and place of work freely

In other words, a freelancer is an autonomous professional who sells their services or expertise, generally to businesses, other freelancers, or even individuals.

The difference between a freelancer and an employee

Unlike an employee, a freelancer does not sign an employment contract (permanent or fixed-term). They are not part of a hierarchy, do not receive a salary, do not benefit from unemployment benefits (except in certain cases), and do not contribute to the same pension fund.

They are responsible for their income, insurance, holidays, and administrative management.

It is a choice that offers great freedom but also requires a great deal of discipline.

In which fields can you be a freelancer?

Today, freelancers are found in almost every sector of the economy, but some areas are particularly suited to independence, such as:

• Design: graphic design, UI/UX, branding, etc. 
• Content writing: SEO, copywriting, storytelling, translation, etc.
• Web development and tech professions: development, data, DevOps, etc.
• Digital marketing: social media, online advertising, emailing, etc.
• Coaching and consulting: HR, strategy, productivity, etc.
• Creative professions: photography, video, music, motion design, etc.

Also more “traditional” sectors such as beauty, training, logistics, or office work.

For each of these fields, you can open a free account with Vivid to benefit from all the necessary tools to manage your freelance work without any difficulty!

What is a freelance contract?

A freelance contract, also called a service agreement, is a commercial agreement signed between an independent worker and a client, whether a company, sole trader, or individual.

A freelance contract formalises a professional collaboration on a defined assignment, with clear conditions: objectives, schedule, payment, deliverables, etc. It can cover a one-off mission or a series of recurring services, such as monthly content production, technical support, consulting assignments, and more.

Above all, this freelance contract is based on a fundamental principle: you are not an employee! This means that: 

• You organise your work as you wish: you set your working hours, methods, and pace
• You are free to accept or refuse a mission without needing permission
• You issue an invoice, not a payslip

Unlike a fixed-term or permanent contract, the client cannot impose working hours on you, make you sign internal rules, or sanction you.

That is why this is considered a relationship between business partners rather than a hierarchical relationship. The freelance contract formalises this relationship between two autonomous entities cooperating towards a common goal. You work not for the client, but with them.

Is a written freelance contract necessary?

In France, a freelance contract does not have to be written to be valid. A simple verbal agreement is enough, provided both parties agree on the terms (assignment, price, duration, etc.).

However, in practice, working without a written freelance contract is taking a real risk.

Why is a written freelance contract essential?

Even if you trust your client and the mission seems simple, the freelance contract is your safety net. It protects you in cases of:

• Disagreement about the scope of the mission
• Late or non-payment
• Changes in deadlines or conditions
• Legal or tax disputes

A written freelance contract is the only solid evidence you can produce if things go wrong. Note also that it is not only useful in case of conflict: it mainly helps avoid misunderstandings from the start.

Furthermore, drafting a contract is not just a legal precaution: it is also a way to structure the collaboration. You clearly define what you will deliver (and what you will not), set expectations, deadlines and payment terms, and finally show that you take your work seriously.

This reassures the client, especially if they are not used to working with freelancers. It also positions you as an organised and reliable professional.

Essential elements to include in a freelance contract

A freelance contract does not need to be long, but it must establish the foundations of the collaboration: everything important for the smooth running of the mission should appear clearly. 

The identity of both parties

Start by clearly naming who is working with whom: 

• For the freelancer: full name, legal status, and SIRET number
• For the client: company name, legal form, registered office address, and name of signatory

This is the contractual basis: without this information, the freelance contract has no legal value.

A precise description of the mission 

Detail what you will deliver in your freelance contract: content, deliverables, features, formats, etc. The more precise the description, the less room there will be for misunderstandings or interpretation.

Payment and payment terms

Your freelance contract must specify: 

• The amount of the mission: flat fee, hourly/daily rate, etc
• The payment schedule: payment on order, on delivery, or in instalments
• The payment method: bank transfer, cheque, etc
• The payment deadline: as negotiated, often around 30 days 

To separate your professional finances from your personal ones, whatever your chosen freelance status, we recommend opening a professional bank account. Click here to join Vivid for free.

Deadlines and duration of the mission

Specify in your freelance contract:

• Start date
• Estimated duration
• If applicable, end date of the mission

For long missions, feel free to plan review points to assess progress, adjust or renew the contract.

Termination conditions 

Things do not always go as planned, so the freelance contract must specify how it can be terminated. It is important to clarify in the contract whether termination can be: 

• At the client’s initiative
• At the freelancer’s initiative 
• Possible reasons: breach of obligations, etc
• Notice period: two weeks, one month, etc

Other mission-specific clauses

Depending on the nature of the mission or the sensitivity of the subject, some clauses may be added to the freelance contract to protect both parties (see the next section for details on each clause): 

• Confidentiality clause
• Assignment of rights clause 
• Non-competition clause
• Arbitration clause 

A poorly drafted clause may be invalid. If you are unsure, start from an approved template or get professional assistance.

Four key clauses to know before drafting a freelance contract

As you have understood, a freelance contract is not only to specify who does what and set a price: it mainly protects both parties if things do not go as planned.

Certain clauses often play a key role in case of dispute, sensitive project or long collaboration.

The confidentiality clause 

Why? To protect sensitive information your client entrusts to you.

When? As soon as you have access to internal data: strategy, client data, source code, prototypes, etc.

What it should specify in the freelance contract: 

• Which information is considered confidential
• How long you commit to not disclosing it 
• Possible sanctions in case of breach

The non-competition clause 

Why? To prevent you from working simultaneously for a direct competitor.

When? In sensitive or highly competitive sectors: marketing, tech, data, etc.

What it should clearly frame in the freelance contract: 

• Duration of the clause
• Geographical area concerned
• Type of prohibited activity

The intellectual property clause

Why? Because as a freelancer, you remain the owner of the creations you produce, unless they are explicitly assigned to the client.

When? Each time you produce original content: design, text, photo, video, software, mock-up.

What it should indicate in the freelance contract:

• Whether you assign your rights or not, and which ones
• For what duration and in which territory
• If there is specific financial compensation for the assignment (mandatory for copyrights in France)

The termination clause 

Why? To provide a framework in case of early termination of the mission.

What it should cover in the freelance contract: 

• Valid reasons for termination: non-payment, repeated delays, breach, etc
• Notice period to be respected
• Payment conditions in case of termination: pro-rata remuneration, end compensation, etc 

Responsibilities of each party under the freelance contract

A freelance contract is a collaboration between two autonomous parties: you and your client. No subordination link, but clear commitments on both sides.

Your responsibilities as a freelancer 

Having a legal structure 

First of all, you must be registered as an independent professional, whether as a micro-entrepreneur, EURL, SASU or any other form adapted to your activity.

Since 2023, registration goes through the INPI one-stop service, which assigns you a SIRET number. 

For all you need to know about freelance statuses, read our article Freelance status: which one should you choose?

Performing your mission seriously 

When working as a freelancer, you must:

• Deliver quality work
• Act with diligence and professionalism
• Respect deadlines and conditions defined in the contract

Being insured with professional liability insurance

Professional civil liability insurance (RC Pro) is essential or mandatory depending on your status. It covers damages you might cause during your activity:

• Loss or damage to equipment
• Leak of sensitive data
• Delay causing financial loss

Certain professions (tech, design, consulting) are more exposed than others. But in any case, RC Pro is a mark of seriousness and protection.

Billing and declaring your income properly

Each mission must result in a compliant invoice (with legal mentions, SIRET number, VAT if applicable). You must declare your income to tax authorities and URSSAF according to your regime.

Be aware that in case of an audit, you are responsible for your tax and social situation, not your client. Consider using tools to facilitate invoice creation and save time.

With Vivid, you have all the accounting tools to make your life easier. Open a free account.

Your client’s responsibilities

Paying you according to the agreed terms

This is one of the fundamental principles. Once the mission is completed, or according to the agreed schedule, your client must:

• Pay you on time
• Respect the amount and payment terms (transfer, deposit, etc.) stated in the contract or invoice

In case of late payment, legal penalties may apply if provided for in your contract

Check your legal status

For assignments exceeding €5,000 (accumulated over 12 months), the client company must verify:

• That you are properly registered as a freelancer
• That you are up to date with your social security contributions

They may request an URSSAF certificate or an extract from the Kbis register. This helps prevent the assignment from being reclassified as disguised employment, which poses a real legal risk for both parties.

Our advice for drafting a freelance contract

You do not need to start from scratch for each new assignment as that would be a waste of time. We recommend creating your own freelance contract template. This should be a clear and solid base document that you then adapt according to the specifics of each project.

Why create your own freelance contract template?

A good freelance contract template is an essential working tool because it saves you valuable time, offers legal protection without having to reread 10 pages every time, and presents a professional and reassuring image from the very first interaction with a client.

Most disputes between freelancers and clients arise from ambiguity around deadlines, deliverables, or payment terms. A well-structured contract resolves the majority of these issues before they even occur.

How to create it?

You have two options:

If you feel comfortable with legal matters 

You can draft your own template by relying on trustworthy resources such as open-source contract templates or legal articles.

If you prefer a fully compliant base 

You can use a legal platform to generate a customised template at a reasonable cost.

In any case, you can enrich your template over time, based on your experiences and situations encountered.

FAQ

Can I work as a freelancer without a written contract?

Yes, but it is strongly discouraged. French law does not require a written contract for freelance assignments. However, in case of dispute (non-payment, disagreement on deliverables, etc.), you will have no formal record of the agreement.

A simple email or signed quote may serve as a basis, but a complete contract remains the best way to protect yourself.

Can I include an advance payment clause?

Absolutely, and it is even recommended. Requesting a deposit (usually between 20% and 50% of the total amount) helps secure the assignment and filters out uncommitted clients. It also demonstrates that your time is valuable.

Be sure to mention it clearly in your contract, specifying the amount, the payment deadline, and the consequences of any delay.

Is an intellectual property clause mandatory?

It is not mandatory, but often essential. By default, the freelancer retains ownership of their creations (texts, visuals, code, etc.) even after delivery, unless otherwise stated.

If your client wishes to use what you have produced (for example publishing an article, commercialising an app, registering a design), they must acquire the rights, which should be specified in writing.

If I subcontract part of the work, should I mention it in the contract?

Yes, it is preferable. If you plan to delegate part of the assignment to another freelancer (developer, graphic designer, writer, etc.), this must be mentioned in the contract with your client.

Some clients require approval of subcontractors or prohibit subcontracting without authorisation. Also, remember to have a contract signed with your own subcontractor.

Do I need a professional bank account as a freelancer?

Not always, but it is often recommended. If you operate as a micro-entrepreneur and your turnover exceeds €10,000 for two consecutive years, the law requires you to open an account dedicated to your activity (not necessarily a professional account, but separate from your personal account).

For other business forms (SASU, EURL, etc.), a professional account is mandatory.