The schedule is the protection
A payment schedule decides how much financial risk you carry and for how long. Everything else in your contract describes what happens if things go wrong; the schedule determines how much you stand to lose when they do.
The principle is simple: never be owed more than you can afford to lose. A freelancer who delivers an entire project before invoicing anything is extending an interest-free loan to a client they may barely know.
Four structures, and when each fits
1. Deposit and balance — the default
A percentage upfront, the rest on delivery. Suits most projects up to around four weeks.
"Total fee: [amount]. [50%] ([amount]) payable before work begins. The remaining [50%] payable on delivery of final files, due within [14] days of invoice."
2. Thirds — for longer projects
A third upfront, a third at an agreed midpoint, a third on delivery. Better for six-week-plus work because it keeps the outstanding amount small at every stage.
"Total fee: [amount], payable in three instalments: [amount] before work begins; [amount] on delivery of [midpoint milestone]; [amount] on delivery of final files."
3. Milestone-based — for large or phased work
Payment tied to specific deliverables rather than dates. The important detail is that each milestone must be something observable, not a percentage of progress — "concepts delivered," not "50% complete," because the second is arguable and the first isn't.
"Payment is due on completion of each milestone below:
- On signature: [amount]
- On delivery of [milestone 1]: [amount]
- On delivery of [milestone 2]: [amount]
- On delivery of final files: [amount]
Each invoice is due within [14] days. Work on the following milestone begins once the preceding invoice is settled."
That last sentence is the whole mechanism. Without it, a client can stay one milestone behind on payment for the entire project and you'd have no natural point to stop.
4. Payment in full upfront — for small or higher-risk work
Reasonable for short projects, new clients with no track record, or anything under roughly a day's work where chasing a balance would cost more than the balance.
How much deposit to take
There's no universal figure, but the amount should cover what you'd actually lose if the client disappeared at the worst moment.
- Small projects (under ~$500): 100% upfront. The admin of chasing a small balance exceeds its value.
- Standard projects: 50% upfront. The common default, and rarely questioned.
- Larger projects: 25–33% upfront with milestones after, so no single outstanding amount is large.
- New client, no track record: lean higher. The deposit is doing double duty as a filter.
A deposit is not just cash flow — it's a qualifier. Clients who won't pay anything before work starts are disproportionately the ones who won't pay at the end either. Refusal at this stage is useful information delivered cheaply.
How to ask without it being awkward
State it as procedure rather than as a request. A deposit presented as "how projects start here" invites no discussion; a deposit presented as something you'd like tends to get negotiated.
"I'll send the scope over today. Once that's signed I'll invoice the 50% deposit, and I'll start as soon as it's through — I've got space in the schedule from [date]."
Three things are working there. The deposit is one step in a sequence rather than a hurdle. It's tied to a start date, which is what the client actually wants. And the phrasing assumes it, which makes questioning it a deliberate act rather than a default.
When a client pushes back
Some pushback is legitimate. Larger organisations occasionally cannot pay before receiving anything, for genuine procurement reasons rather than reluctance. That's worth accommodating.
Workable alternatives: a smaller deposit with more frequent milestones; a first milestone scheduled early and small, so the first payment arrives quickly; or a paid discovery phase invoiced separately before the main project.
What to avoid: dropping the deposit entirely and hoping. If you genuinely can't take one, shorten the milestones instead so you're never far ahead of payment.
Distinguish the two kinds of pushback. "Our procurement process pays on invoice after delivery, here's the documentation" is a real constraint. "Let's just settle up at the end" from a small business with no process is not a constraint — it's a preference, and it's the same preference that shows up again when the final invoice is due.
Common questions
How much deposit should a freelancer charge?
Fifty percent is the common default for standard projects and is rarely questioned. Take 100% upfront on small jobs where chasing a balance would cost more than the balance, and 25 to 33% on larger projects with milestone payments after, so that no single outstanding amount is large.
What is a milestone payment schedule?
Payment tied to specific deliverables rather than to dates or percentages of progress. Each milestone should be something observable — 'concepts delivered' rather than '50% complete' — because an observable trigger cannot be argued about. Include a line stating that work on the next milestone begins once the previous invoice is settled.
Should I ask for payment upfront as a freelancer?
Yes, in almost all cases. A deposit limits what you can lose if a client disappears, and it acts as a filter: clients unwilling to pay anything before work starts are disproportionately the ones who resist paying at the end. For very small projects, taking the full fee upfront is reasonable.
What if a client refuses to pay a deposit?
Distinguish a genuine constraint from a preference. Large organisations sometimes cannot pay before receiving anything for real procurement reasons — accommodate that with a small early milestone or a separately invoiced discovery phase. A small business simply preferring to settle at the end is expressing the same preference that will reappear at the final invoice.
What payment terms should I put on each invoice?
Net 7 or net 14 suits most solo freelancers. Whatever you choose, write a specific due date on the invoice rather than a duration, and state the terms in the payment schedule before work begins so the invoice is confirming something already agreed rather than introducing it.