BriefLoft field guide
Proposal payment terms: practical examples
Compare deposits, milestones, retainers, and payment timing for different service engagements.
Build a proposal with payment termsChoose terms that fund the work
Payment terms should reflect cash needs, delivery risk, and the value transferred at each stage. A deposit reserves capacity; milestones connect payment to progress; retainers pay for recurring access or capacity.
Examples to adapt
For a short project: 50% to schedule and 50% before final delivery. For a longer build: 30% at kickoff, 40% after approved design, and 30% before launch. For ongoing service: payment monthly in advance with a defined renewal and cancellation process.
- State invoice due dates.
- Explain taxes and reimbursable expenses.
- Define what happens when payment is late.
- Connect delivery of final files or rights to the agreed payment event where appropriate.
Keep the proposal and contract aligned
The commercial summary should match the invoice schedule and signed agreement. If the client negotiates new terms, update every document that contains the old schedule.
Common questions
Should I always require a deposit?
Not always, but it is a common way to reserve capacity and reduce risk for project work.
What does net 30 mean?
It generally means payment is due 30 calendar days after the invoice date, but define terms clearly and consider local rules.