Clients often overlook invoices once the job’s over. I’m considering a shift to payment schedules rather than sticking with the standard net-30.
Does splitting payments really encourage timely payments, or will it complicate tracking even more?
I just ask for half up front. Keeps things simple and I get paid most of the time.
Payment schedules work but you need to pick the right split for your type of work.
I do 30% upfront, 40% at halfway point, and 30% when done. Three smaller amounts are easier for clients to handle than one big bill at the end.
The key is getting that first payment before you start anything. Once they pay you once, they usually keep paying.
Payment schedules cut my unpaid invoices by about 80%. I learned this the hard way after getting burned on a few big jobs. My rule is simple: no work starts without money in the bank. I collect 40% upfront, then bill weekly for labor and materials as I go. Final payment is due before I hand over keys or do the final walkthrough. Weekly billing keeps the amounts smaller and clients don’t get sticker shock. They also can’t claim they forgot about the project when they’re paying every week.
Yeah, payment schedules definitely help. I switched about two years ago and wish I’d done it sooner.
My approach is different from what others mentioned. I do milestone-based payments instead of percentages:
- Payment 1: After project kickoff and initial deliverables
- Payment 2: At major milestone completion
- Payment 3: Final delivery
This works better for me because milestones are concrete. Clients can see exactly what they’re paying for at each stage.
The biggest benefit isn’t just getting paid faster. It’s that problem clients reveal themselves early. If someone pushes back hard on the payment structure or misses that first milestone payment, you know you’re dealing with trouble.
Tracking is actually simpler now. Instead of one big invoice sitting unpaid for months, I have smaller amounts moving through the system regularly. Much easier to manage cash flow this way.
Payment schedules saved my business honestly. I do 50% upfront and 50% on completion for most jobs now.
The upfront payment weeds out clients who weren’t serious about paying anyway. And that final 50% usually comes faster because they know the routine from the start.
Tracking is actually easier for me. Instead of chasing one big invoice for weeks, I only have to worry about half the money. The upfront part is already in my account.
I still use net-15 terms on the final payment though. Net-30 gives people too much time to forget or spend that money elsewhere.
Yeah half up front works for most jobs I do