How do you ensure secure payments upfront to prevent unpaid invoices?

Debt Collection & Unpaid Invoices
1

I’ve had my share of clients going silent after completing work. Considering options for upfront payments but looking for insights.

What methods have proven effective for ensuring secure payments before diving into a project?

2

Cash upfront or I walk away these days.

3

Been doing this for years and learned some hard lessons. Here’s what actually works for me:

  • Payment structure I use:

    • 50% before I touch anything
    • 25% at milestone review
    • 25% on delivery

  • Red flags to watch for:

    • Clients who negotiate the deposit down
    • Anyone asking for net 30 or longer terms
    • People who seem rushed to start without discussing payment

  • Tools that help:

    • Payment processors that hold funds in escrow
    • Contracts that clearly state work stops if payments are late
    • Invoice apps that send automatic reminders

The clients worth keeping understand that deposits are normal business practice. The ones who push back usually end up being problem clients anyway.

Also learned to trust my gut. If something feels off during initial conversations about money, it probably is.

4

I take payment through services that release funds only when both sides agree the work is done. This way the client knows their money is safe and I know I’ll get paid.

For smaller jobs I just ask for full payment upfront. Most people are fine with it if you explain you’ve been burned before.

The key is being upfront about your payment terms from the first conversation. Don’t wait until after you’ve already started talking about the project details.

5

I usually ask for a deposit before starting. That way, I get something upfront to cover my time.

6

Ask for half the job cost upfront. Get the rest when the job is done. I learned this after being burned. For larger jobs, break payment into thirds. First at the start, second when halfway done, and the final one when everything is complete. This helps keep cash flowing and makes it easier for clients. If they refuse to pay anything upfront, it’s best to walk away. Clients who won’t pay something upfront are unlikely to pay at the end.