Freelancing mainly with informal agreements has its ups and downs. Late payments are common when relying on trust alone.
For those who use contracts, do you find they make a difference in getting clients to stick to payment schedules?
I just ask for half up front these days.
Contracts can help but in the end, many clients pay when they feel like it.
Contracts set clear expectations for payment. I’ve found that including terms and late fees helps a lot. Clients are more likely to stick to the schedule when there are penalties involved. Those who still delay payments are harder to deal with, but having a contract gives you leverage when you need to follow up.
Started using contracts about three years ago after getting burned on a $2,800 project that took four months to collect.
The biggest change wasn’t faster payments but easier conversations. Before contracts, I felt awkward bringing up overdue invoices. Now I just reference the agreement we both signed.
My contracts include a 2% monthly late fee and net 15 terms. Most clients pay on time now, but when they don’t, I have something concrete to point to. Had one client try to negotiate terms after the work was done - showed them the signed contract and got paid within a week.
The real benefit is weeding out problem clients upfront. Anyone who pushes back hard on reasonable payment terms usually becomes a headache later.
Contracts won’t magically fix slow payers, but they give you something to work with when things go sideways.
The main benefits I’ve noticed:
- Filters out difficult clients
- Makes follow up easier
- Stops scope creep
I keep mine simple. One page with payment terms, project scope, and what happens if either side wants to bail early. Nothing fancy.
Sure, some clients still pay late regardless. But at least you’re not starting from zero when you need to have those awkward money conversations.
Contracts can assist, but they are not foolproof. Some clients will still attempt to delay payments.
The key advantage is having clear terms in writing. It reduces confusion and simplifies follow-ups if payments are overdue.
I prefer to keep my contracts straightforward, focusing on payment timelines and late fees.