When is payment actually due?
The heart of a payment clause is the due date, and "net-30" only tells you half the story — the other half is when the clock starts. Net-30 from the invoice date is very different from net-30 from the end of the month you invoice, or from the client's "acceptance" of the work, which can push real payment weeks further out. Longer terms like net-60 or net-90 are common with larger clients, and they quietly turn you into an unpaid lender for a month or two. Read the trigger and the number together, because that is what decides the day money lands in your account.
Watch for: A payment clock that starts on "acceptance" or "approval" rather than the invoice date, and net-60 or net-90 terms buried in the fine print when the work is small and short.
Ask for: Payment tied to the invoice date (for example, net-15 or net-30 from invoice), with a defined date the clock starts so "when" is never left to the client's discretion.
Deposits and milestone payments — getting paid before and during the work
Nothing says a freelancer has to fund the entire project and hope to be paid at the end. A deposit — often a portion of the fee up front before work begins — is a normal way to align the client's commitment with yours. For longer engagements, milestone payments tied to defined stages spread the risk so you are never carrying months of unpaid work at once. The key detail is that each payment should attach to something concrete (a start date, a delivered stage) rather than to a vague sense that the client is happy so far.
Watch for: A structure where the entire fee is payable only at the very end, or milestones defined so loosely that the client can always argue the stage was never quite reached.
Ask for: A deposit before work starts and, for longer projects, milestone payments tied to clearly defined stages — each with its own due date — so you are paid as the work progresses.
Late payment — interest, and the right to pause work
A payment clause that sets a due date but says nothing about missing it gives the client little reason to pay on time. A late-payment provision can add interest on overdue amounts and, just as importantly, give you the right to suspend work until you are paid. That pause right matters: without it, you may be contractually obliged to keep delivering even while invoices go unpaid. Whether interest on overdue sums is enforceable, and at what rate, can depend on your jurisdiction, so treat any specific figure as something to confirm rather than assume.
Watch for: No late-payment consequences at all, or a clause that requires you to keep working regardless of unpaid invoices with no right to pause and no interest on overdue amounts.
Ask for: Interest on overdue invoices and an express right to suspend work if payment is late by a defined period — so a missed payment has consequences and does not simply become your problem to absorb.
What's billable — and is payment tied to delivery or "satisfaction"?
Two things quietly decide how much you actually take home. First, expenses: the clause should say whether costs like software, travel, or materials are reimbursed on top of your fee, and whether pre-approval is needed. Second, and more dangerous, is what payment is conditioned on. Payment tied to delivery of the agreed work is objective — you did the thing, you get paid. Payment tied to the client's "satisfaction" is subjective and can let a client withhold your fee simply by saying they are not happy, even when you met the brief.
Watch for: Payment conditioned on the client's "satisfaction," "approval," or "sole discretion," and expense terms that leave you absorbing real costs with no reimbursement.
Ask for: Payment tied to delivery against defined, objective criteria rather than the client's subjective satisfaction, and expenses reimbursed on top of the fee with a clear rule on what needs pre-approval.
Are the payment terms in your contract fair?
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Review your contract freeFrequently asked
What are fair payment terms for a freelancer?
Fair terms are usually the ones that keep you from financing the client's project for free: a clear due date measured from the invoice, often net-15 or net-30, a deposit before work begins, and milestone payments on longer jobs. It also helps to have interest on late payments and a right to pause work if invoices go unpaid. What counts as reasonable varies with the size of the client, the length of the job, and your industry, so treat these as a starting point rather than a fixed rule.
Is it normal to ask for a deposit?
Yes — asking for a deposit before starting work is a common and widely accepted practice among freelancers and contractors. It protects you from investing significant time before seeing any commitment from the client, and it signals that the client is serious. The exact portion taken up front varies by trade and by the size of the engagement, and some clients or procurement policies push back, which is a normal negotiation rather than a sign you asked for something unusual.
What can I do about net-60 or net-90 terms?
Long terms like net-60 or net-90 are common with larger companies, and they effectively ask you to wait one to three months to be paid. You can try to negotiate them down, ask for a deposit or milestone payments to reduce how much unpaid work you carry, or add interest on overdue amounts and a right to pause work if payment slips further. If a client will not move on the terms, pricing the delay into your rate is another option. For a large or high-risk contract, it can be worth having a professional review the payment terms before you commit.
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This guide is general information, not legal advice, and Initialed AI is not a law firm. How payment terms — including late-payment interest — are interpreted and enforced can vary by jurisdiction. For a large or high-stakes agreement, consult a qualified attorney before you sign.