What are the best payment terms for freelancers?

For most projects, '50/50' (50% upfront, 50% on completion) is safest. For hourly work, 'Net 15' (payment due 15 days after invoice) is a good balance between client cash flow and yours.

What is a 'Kill Fee'?

A kill fee is a percentage of the total project fee (often 25-50%) that the client must pay if they cancel the project through no fault of yours. It protects you from reserved time that you can't resell.

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How to Write Freelance Contract Payment Terms (With Samples)

Learn how to write bulletproof freelance payment terms. Includes examples for Net 15, late fees, kill fees, and upfront deposits to ensure you get paid on time.

Quick start: How to write freelance payment terms

Step 1

Define the Payment Schedule

Clearly state when payments are due. E.g., '50% deposit upfront, 50% upon completion' or 'Net 15 days from invoice date'.

Step 2

Include a Late Fee Clause

Add a clause like 'A late fee of 1.5% per month will be added to invoices not paid within 30 days'. This encourages timely payment.

Step 3

Specify Payment Methods

List accepted payment methods (Bank Transfer, Stripe, PayPal) and who pays the transaction fees.

Step 4

Add a 'Kill Fee' (Cancellation Clause)

Protect yourself from cancelled projects. State that 'In the event of cancellation, the client shall pay for all work completed up to that date'.

Vague payment terms lead to late payments. Learn exactly what clauses to include in your contract to ensure you get paid on time, every time.

Why Payment Terms Matter

Your contract is your first line of defense against non-payment. If you don't clearly state when and how you expect to be paid, clients will prioritize other vendors who do.

Good payment terms set expectations upfront, remove ambiguity, and give you legal standing to charge late fees or pause work if payments slip.

Essential Clauses to Include

1. The Payment Schedule

Don't just say "Payment due upon receipt" unless you mean it. Be specific.

"The Client agrees to pay the Freelancer a total fee of $X. A 50% deposit is due before work begins. The remaining 50% is due upon delivery of final files."

2. Net Terms (Time to Pay)

If you bill hourly or monthly, define the "Net" terms. Net 15 is standard for freelancers; Net 30 is common for corporations.

"Invoices will be submitted monthly. Payment is due within 15 days of the invoice date (Net 15)."

3. Late Payment Fees

You must have this in writing to enforce it. It signals you are serious.

"A late fee of 1.5% per month (18% annually) will be applied to any invoice not paid by the due date."

4. Kill Fee (Cancellation Policy)

What if the client cancels halfway through? Ensure you get paid for time reserved.

"In the event of project cancellation by the Client, the ownership of all copyrights and the original artwork shall be retained by the Freelancer, and a cancellation fee for work completed, based on the contract price and expenses already incurred, shall be paid by the Client."

Best Practices for Getting Terms Signed

Send the contract with the proposal: Don't wait until they say "yes" to spring terms on them.
Keep it simple: Use plain English. If a client can't understand it, they won't sign it quickly.
Automate reminders: Even with a contract, people forget. Use a tool like Foloque to automate the follow-up process based on these terms.

Enforce your terms automatically

A contract is only good if you enforce it. Foloque sends automated, polite reminders based on your payment terms so you don't have to be the "bad guy".

Start sending polite reminders automatically with Foloque

Set up your first automated payment reminder workflow in minutes and stop worrying about what to say or when to follow up. Foloque keeps everything on schedule for you.

Try Foloque free and automate your reminders