Freelance deposits and payment terms: how much upfront and how to ask

Why a deposit matters

A deposit does three jobs. It reserves your time, which you can't sell twice. It filters out clients who aren't serious, because people who won't pay a deposit are often the same people who pay late. And it shares the risk: without one, you carry 100% of the risk until the final invoice clears.

Asking for one is normal in most service businesses. Builders, photographers, venues and agencies all do it. You don't need to apologise for it.

How much to ask for

• Small projects (a few days of work): 50% upfront and 50% on delivery is common, and some freelancers take 100% upfront for very small jobs.
• Medium projects (a few weeks): a deposit of around 30–50%, then the rest on delivery or split across one or two milestones.
• Long projects (months): a deposit, then milestone or monthly payments, so you are never owed more than a few weeks of work.
• New clients: lean toward a higher deposit until there is some payment history.
• Retainers: billed in advance at the start of each month or period.

There's no universal right number. The useful rule of thumb is to ask: if this client stopped paying tomorrow, how much unpaid work would I be carrying? Structure the payments so that number stays small enough to absorb.

Net 15 vs Net 30, and other terms

"Net 30" means the invoice is due 30 days after the invoice date. Net 15 means 15 days, and "due on receipt" means immediately. Larger companies often have fixed payment cycles and may insist on Net 30 or longer; small businesses and individuals can usually pay faster.

Shorter terms improve your cash flow but aren't always negotiable. If a client insists on long terms, compensate elsewhere: a bigger deposit, more frequent milestone invoices, or pricing that reflects the wait. Whatever you agree, print a specific due date on every invoice (for example "Due 14 November 2026"), because a date is harder to overlook than a formula like "Net 30".

Milestone payments that keep you safe

Tie each payment to something the client can see: approval of a concept, delivery of a draft, launch. Invoice on the day the milestone is reached, not at the end of the month. A simple three-part structure for a mid-sized project looks like this: deposit to start, a second payment when the main draft is approved, and the balance on final delivery, with files or rights handed over once the balance is paid.

Write down what happens if the project pauses on the client's side for a long time. A common approach is to invoice for work completed to date if the client is unresponsive for a set number of weeks.

How to ask for a deposit

Put it in the proposal and the contract, not as a surprise at the end. In your proposal's pricing section, a single line does it: "Projects start once the agreement is signed and the 40% deposit is received; the rest is due on delivery."

If a client pushes back, explain the reason briefly and offer flexibility on the structure, not on the principle: "The deposit reserves your dates in my calendar. If 40% is difficult right now, we can split the project into smaller milestones so each payment is lower." Then send the deposit invoice right away, with the start date it unlocks.

Track terms and due dates in one place

Once you have different terms for different clients, memory stops being reliable. Log every invoice with its date, terms and due date so you can see what is due this week and what is overdue. You can create a clean invoice with the free invoice generator; when payments do run late, the late-payment system guide and the free late fee calculator help you respond consistently.

A note before you use this

This guide is general information for freelancers, not legal, tax or financial advice. Rules on contracts, invoices, late fees and taxes differ by country and state, so check the requirements where you and your client are based, and get professional advice for high-value or cross-border work.

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