How to Use Deposits and Milestones to Get Paid Faster as a Freelancer

One of the biggest risks in freelancing is doing all the work up front — and waiting weeks or months to get paid.
Deposits and milestone payments are your best tools to keep cash flowing and reduce non-payment risk.

Here’s how to use them effectively without scaring away good clients.

1. Always Require an Upfront Deposit

Why it matters: A deposit proves the client is serious and gives you working capital.

Best practices:

  • Standard deposit: 25–50% of total project value
  • For new clients: Lean toward 50%
  • Make deposit non-refundable once work begins

🧠 Tip: Frame it as securing their spot in your schedule — not as a “trust” issue.

2. Break Projects Into Milestones

Milestones spread payment and risk across the project:

  • Design phase: 25%
  • Prototype or draft: 25%
  • Final delivery: 50%

Each milestone should:

  • Be clearly defined in the contract
  • Have a specific deliverable the client can approve
  • Trigger an invoice immediately upon approval

3. Tie Milestones to Deliverables, Not Dates

Basing payments on dates can lead to disputes if the client delays feedback.
Instead, link them to specific outputs:

“Payment due upon delivery and acceptance of draft copy for Website Project, Section A.”

This keeps your cash flow safe even if the client drags their feet.

4. Use Contracts to Lock It In

A verbal agreement on deposits and milestones isn’t enough.
Your contract should state:

  • Exact deposit percentage and due date
  • Milestone structure and payment triggers
  • Penalties for late payments
  • That work pauses if payment is overdue

Tools like ContractG AI can help you check that these clauses are airtight.

5. Enforce the Policy Every Time

If you make exceptions, clients will expect them.

  • Don’t start work without the deposit
  • Don’t move to the next milestone without payment
  • Politely but firmly pause work if overdue

⚠️ Pro tip: This isn’t being difficult — it’s professional business practice.

Final Thoughts

Deposits and milestones protect your income, your time, and your sanity.
The best clients will respect you more for having clear payment structures.

Next time you take on a project, run your contract through ContractG AI — make sure your deposit and milestone clauses work for you, not against you.

🛡️ Get paid on time. Keep your business healthy.