Suppose you are a freelance web designer or developer who have completed a project for your client. Now you want to send your client an invoice (a bill for the client to pay you). If you have a PayPal account, then one easy invoicing solution is to use PayPal to send the invoice.

All that you need is your client's email address for PayPal to send the invoice to. The client does not need to have a PayPal account. Only you need to have a PayPal account to send the invoice and to receive the money when the Client pays the invoice.

When the client receives the invoice, they will have the option to pay using PayPal or with a credit card.

Here are the steps in which to send a PayPal invoice...

1. Log into your PayPal account

2. Click on the "Merchant Services" tab

3. Click on the "Send Invoice" link.

4. On the "Create Invoice" page, select "New Invoice" from the drop list. It is the default choice already.

5. Click the "Continue" button.

6. On the "Create Invoice" page, your name or company name would have been filled in for the "Name" in your invoice. Then fill in the rest of your sender information such as Your Address (optional), and your phone.

7. On the same page, fill in the recipient's email address (your client's email address).

8. On the same page in the bottom section, enter the invoice detail.

9. Select the currency that you want to receive the money.

10. Select the invoice type as either "Goods" or "Services".

11. Then enter an optional email subject and/or note.

12. Fill in the line item of the goods or service rendered and the amount. You can checkmark if you want PayPal to apply tax to each amount or not. If you need more line item rows, you can click the button "Add more rows".

13. For goods, you can also optionally enter shipping cost.

14. Click the "Continue" button.

15. Here you get to see a preview of your invoice. If it looks good, click "Send Invoice". Otherwise, you can click "Edit" or have the last chance to "Cancel".

16. After clicking the "Send Invoice" button. You will get a confirmation page that says your invoice have been sent.

17. You now have the option of saving the invoice as a template for future use. At the bottom there are links to view the dteails of this request or to manage invoice templates. Or you can simply go back to your account or send another invoice.

18. You are now done. PayPal will actually send you a "Receipt for your invoice" to your email for your reference. That email will contain a copy of the invoice information that you had just sent (including the invoice amount). The email will also have a link where you can click to modify or cancel the invoice. However, you can always do that in your main account page anyways (as you shall see in the next step).

19. When you go back to your main accounts page, you will see the invoice transaction marked as "Billed To" with a payment status of "Pending". If you had placed a note in your invoice, there will be a note icon for this transaction so that if you hover over the note icon, a tooltip will display the note for your reference.

20. Just wait for you payment. There is a droplist for this transaction where you can send a reminder or cancel the invoice.