What payment terms should freelancers use?

The best payment terms depend on your industry, project size, and risk tolerance. For small projects under £500, many freelancers request 50-100% upfront. For larger projects, a milestone-based schedule (e.g. 30% deposit, 40% at midpoint, 30% on completion) protects both parties. Net 14 or Net 30 are the most common due dates.

Should freelancers ask for a deposit before starting work?

Yes. Requesting a deposit (typically 25-50% of the project value) is standard practice and protects you against non-payment. It also demonstrates client commitment. For new clients or large projects, a higher deposit percentage is recommended.

Can I include late payment fees in my freelance contract?

Absolutely. In the UK, the Late Payment of Commercial Debts Act 1998 gives you a statutory right to charge 8% above the Bank of England base rate on overdue invoices, plus fixed compensation of £40-£100. You can also set contractual late fees, provided they are reasonable.

What is a kill fee and should I include one in my contract?

A kill fee (or cancellation fee) compensates you if a client cancels a project after work has begun. Typical kill fees range from 25-50% of the remaining project value. Including one in your contract protects your time and deters casual cancellations.

Payment Terms Generator for Freelancers — Free Tool

🏷️ Step 1 — Your Industry

What kind of work do you do?

🎨

Design

Graphic, web, UX/UI, branding

💻

Development

Software, web, app, WordPress

✍️

Writing

Copywriting, content, editing

📊

Consulting

Strategy, coaching, advisory

📸

Photography / Video

Photo, video, production

📣

Marketing / SEO

Digital marketing, SEO, ads

🌍

Translation

Translation, localisation

🔧

Other Services

Any other freelance work

💷 Step 2 — Project Size

How much is the project worth?

📌

Small

Under £500

📋

Medium

£500 – £2,000

🏗️

Large

Over £2,000

🛡️ Step 3 — Risk Tolerance

How much protection do you want?

🔒

Conservative

Maximum protection — higher deposits, shorter terms

⚖️

Balanced

Fair to both sides — standard deposits, reasonable terms

🤝

Flexible

Client-friendly — lower deposits, longer terms

Select all three options above to generate your terms

📋 Recommended Payment Terms

💰 Payment Schedule

📄 Contract Clause — Copy & Paste

Paste this into your contract, proposal, or terms of service. Edit the bracketed items to match your project details.

⚠️ Late Payment Clause

Add this alongside your payment terms to protect against late payers.

🚫 Cancellation / Kill Fee Clause

Protects you if the client cancels after work has started.

Why Payment Terms Matter

Clear payment terms set expectations before work begins. Without them, you're leaving your cash flow to chance — and giving clients an excuse to delay.

Protect your cash flow. Knowing when money arrives lets you plan your finances and avoid the feast-or-famine cycle.
Reduce disputes. When payment milestones are agreed upfront, there's less room for "I didn't know I had to pay yet."
Signal professionalism. Structured payment terms show clients you're a business, not a hobbyist. Serious freelancers get taken seriously.
Legal protection. Written payment terms in your contract are enforceable. Verbal agreements are much harder to prove.

Common Payment Structures for Freelancers

100% Upfront

Best for small projects or new clients. Eliminates risk entirely but may deter some clients.

50/50 Split

Half before work begins, half on completion. The most popular structure for mid-range projects.

Milestone Payments

Split into 3+ payments tied to deliverables. Ideal for large or long-running projects.

100% on Completion

Full payment after delivery. Carries the most risk — only use with trusted, established clients.

Tips for Negotiating Payment Terms

Always get it in writing. Whether it's a formal contract or a simple email confirmation, written terms are your safety net.
Don't start work without a deposit. Even a small deposit shows commitment and filters out time-wasters.
Match terms to client risk. New clients get tighter terms. Long-standing, reliable clients can earn more flexibility over time.
Include late payment consequences. Stating upfront what happens if they pay late (interest, paused work) deters delays.
Be willing to walk away. If a client refuses reasonable payment terms, that tells you a lot about how they'll treat your invoices.

Automate Your Invoice Follow-Ups

Great payment terms are step one. Landolio's free automated reminders handle step two — so you never have to chase a late invoice again.

Try Free Automated Reminders →

Related Resources

Go deeper on payments, contracts, and protecting your freelance income:

Freelance Payment Terms Generator