5 Payment Terms You Should Include in Every Proposal

Protect Your Time, Income, and Peace of Mind With These Freelancer Must-Haves

If you're freelancing without clear payment terms, you're leaving yourself wide open to late payments, confusion, and awkward client conversations.

A strong proposal doesn’t just outline what you’ll do—it sets the ground rules for how you’ll get paid. And in a business where cash flow is king, your payment terms can make or break your freelance career.

In this post, we’ll walk you through the 5 most essential payment terms every freelancer should include in their proposals—and why each one protects your business. You’ll also learn how to present these terms professionally and how tools like Schemon help you enforce them with ease.

Why Payment Terms Matter More Than You Think

Many freelancers get burned by:

• Clients ghosting after delivery
• Projects dragging on with endless “tweaks”
• Late or partial payments
• Scope creep with no additional compensation

Clear payment terms:

• Set expectations upfront
• Reduce disputes
• Speed up your payment timeline
• Help you look like a seasoned professional

Even if you're working with friends, referrals, or startups, terms protect both parties and set the tone for a smooth engagement.

1. Payment Schedule (When Will You Get Paid?)

This is the cornerstone of your freelance proposal. A payment schedule defines when you expect to be paid and how much.

Options include:

• 50/50 Split: 50% upfront, 50% on delivery (most common)
• Milestone-based: Payments tied to project phases (e.g., strategy, design, delivery)
• Weekly/Monthly Retainer: Ongoing work billed at regular intervals

Why it matters: Without a schedule, clients might delay indefinitely or wait until after full delivery. That’s risky.

With Schemon, you can request payments tied to milestones, and clients can pay directly through your booking or proposal page—no awkward follow-ups.

2. Payment Due Date (How Long After Invoicing?)

Always specify a due date—don’t leave it up to interpretation.

Standard terms:

• Net 7 (due within 7 days of invoice)
• Net 14 or Net 30 (longer for corporate clients)

Include language like:

“Invoices are due within 7 days of receipt. Late payments may incur a 5% fee.”

Why it matters: Without a due date, “ASAP” can become “whenever they feel like it.”

Schemon automatically time-stamps invoices and lets you track overdue payments clearly—no spreadsheet needed.

3. Late Payment Penalties

Yes, it’s OK to charge for late payments.

Even if you don’t always enforce it, just including a penalty clause shows you’re serious and encourages clients to pay on time.

Sample clause:

“A late fee of 5% of the total invoice will be applied for payments more than 7 days overdue.”

Why it matters: You’re not a bank. Don’t let clients use your business as a free line of credit.

4. Accepted Payment Methods

Be specific about how clients should pay:

• Credit/debit card
• Bank transfer
• PayPal
• Stripe
• Schemon (your own client portal)

Letting clients know their options removes friction at payment time.

Pro Tip: Schemon provides a secure, all-in-one payment system built for freelancers. Your clients can click, pay, and be done—no chasing.

5. Non-Refundable Deposits or Cancellation Fees

You block off time for each client—your time has value.

Make it clear that you require a deposit (commonly 25%–50%) to begin work, and under what conditions that deposit is non-refundable.

Example:

“A 50% non-refundable deposit is required to reserve project time. If the client cancels after work begins, this deposit will not be returned.”

You can also include a kill fee if the client cancels mid-project.

Why it matters: A deposit ensures commitment. You’re not chasing no-shows.

Bonus: Put It All Together

Here’s what a payment terms section in your proposal might look like:

Payment Terms

• A 50% non-refundable deposit is due prior to project start
• Remaining 50% due within 7 days of final delivery
• Payments can be made via credit card, bank transfer, or Schemon
• A late fee of 5% applies to invoices not paid within 7 days of the due date
• Work will not commence until deposit is received

How Schemon Makes Freelance Payments Smoother

With Schemon, freelancers can:

• Share branded booking or proposal pages
• Collect deposits or full payments upfront
• Timestamp all transactions
• Automate reminders for overdue payments
• Create a more professional client experience (without the overhead)

“Clients take me more seriously when everything is organized in my Schemon channel—from quotes to payments to shared files.”

Start accepting deposits and managing payments the smart way → Schemon.com

Final Thoughts

Freelancers don’t need to be lawyers to protect themselves—you just need to be proactive and professional.

By including these 5 key payment terms in every proposal, you:

• Reduce risk
• Improve cash flow
• Attract better clients
• Free up your energy to focus on great work

And when you back those terms with a platform like Schemon, you go from “freelancer” to trusted service provider.