Client payment terms that work aren’t one-size-fits-all. They’re designed to fit your business rhythm and keep projects profitable. Yet many consultants, architects, and designers bill clients a certain way simply because that’s how everyone else does it.
The basic truth is: You can shape your terms to fit your business model, your schedule, and even your client relationships.
If your current setup leaves you chasing payments or waiting too long to get paid, it might be time for a rethink.
Why Payment Terms Deserve a Second Look
Payment terms are more than a line at the bottom of an invoice. They’re boundaries that protect your time, reinforce professionalism, and ensure you get paid for the value you deliver.
Clear payment terms help you:
- Set expectations before any work begins
- Avoid uncomfortable follow-ups later
- Keep cash flow predictable
- Filter out clients who hesitate when money is mentioned
Pro Tip: The clearer your terms, the smoother the client experience. When clients know what to expect, payments happen on time.
Billing the Way You Want, Not the Way Everyone Does
Maybe you invoice the same way others in your industry do. Often it’s one invoice at the end of the project, due in 30 days. It feels standard. But that doesn’t mean it’s working for you.
There are more flexible ways to bill that can protect your income while keeping clients happy. You can blend structures or create terms that reflect how your projects actually unfold.
Here are a few examples to consider.
Payment Structures That Actually Work
1. Deposit and Final Balance
Ask for 50% upfront and the rest before final delivery. This gives you a cushion for expenses and confirms your client’s commitment from the start.
Sample wording:
“A 50% deposit is required to reserve your project start date. The remaining balance is due prior to delivery of final files.”
2. Milestone Payments
For longer or higher-value projects, break the payment schedule into parts that align with key deliverables. Example: 30% deposit, 40% mid-project, 30% on completion.
Sample wording:
“Payments are due at the start of each project phase, based on agreed milestones outlined in the proposal.”
Pro Tip: Use FreshBooks to automate milestone invoices and reminders. It’s easy to set up and saves you the headache of manual follow-ups. It’s also simpler to navigate than other cloud accounting apps I’ve worked with.
3. Monthly Retainers
If you work with repeat clients, a retainer helps both sides. It ensures steady income for you and predictable access to your time for them.
Sample wording:
“A monthly retainer of $X is due on the first of each month. Unused hours may not roll over unless otherwise agreed.”
4. Net-15 or Net-30 Terms
These traditional terms can still work but use them strategically. Offer Net-15 for trusted, repeat clients. For new clients, ask for a partial payment upfront first.
Sample wording:
“Payment is due within 15 days of invoice date. Work may pause if payment is not received by the due date.”
Avoiding Common Payment Mistakes
Even well-written terms can fail if you don’t enforce them. Here’s what to watch for:
- Too vague: “Due upon receipt” rarely leads to fast payment. Specify a real number of days.
- No follow-up system: Use automated reminders so nothing slips through.
- No late fee policy: It’s not about penalties, it’s about clarity.
- Scope creep: If the project grows, your payment terms should grow with it.
Pro Tip: Add something like this line to your proposals, at minimum. Maybe you’ll want to add an hourly dollar amount on small additions:
“Additional work beyond this agreement will require written approval and may affect the payment schedule.”
If you’ve ever had a client disappear after receiving an invoice, you’ll appreciate this article: Client Ghosted Your Invoice? Here’s What to Do.
What to Do When Payments Lag
Sometimes delays are innocent: someone forgot or got busy. Other times, it’s a habit. Either way, don’t let it slide.
Try this sequence:
- Send a polite reminder the day after payment is due.
- Follow up one week later with a firmer tone.
- Pause work until payment is made.
If this happens often, it’s time to strengthen your contract language or shorten your terms.
Use Slow Seasons to Review Your Terms
When business quiets down, it’s the perfect time to review your contracts. Ask yourself:
- Do my payment terms protect my time and energy?
- Do they reflect how I actually work today?
- Are my invoices clear and easy to pay?
Small improvements now can make your next busy season smoother and more profitable.
The Bottom Line
Good payment terms show respect…for your work and for your client’s trust. They help you stay organized and prevent awkward money conversations later.
If your current terms aren’t working, that doesn’t mean you’ve done anything wrong. It just means you’re ready for an upgrade.
Start with one small change, like requiring a deposit or setting clearer due dates. Over time, you’ll build a system that works for you instead of against you.
Ready to Feel More in Control of Your Finances?
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