Taking Control of Payment Terms

Here’s one of the biggest traps I see web designers and developers fall into:

They believe payment terms are non-negotiable.

Whatever the client says, they just accept it.

Priya, a talented web developer, was no exception. She builds landing pages for big brands - household names with massive reputations.

Her work? In high demand. But her cash flow? A total mess.

The Problem

Priya’s clients operated on Net 60 or even Net 90 payment cycles.

While the projects kept coming, the payments barely trickled in. And Priya found herself stuck:

- Dipping into savings to pay for software and tools.

- Struggling to pay her assistant while waiting for invoices to clear.

- Stressed every time another payment was overdue.

One evening, after chasing yet another late payment, Priya hit her breaking point. She called me and said:

"Why am I financing my client’s business? This just doesn’t work for me."

And she was right. It didn’t.

The Shift

On our call, I told her something that changed everything:

"You know you can just ask for upfront payment, right?"

Priya hesitated. Like most freelancers, she’d assumed pushing back on payment terms would scare clients away. But she decided to try anyway.

The next time a client sent over their standard Net 60 terms, Priya responded confidently:

"I’d love to work with you. To ensure the project runs smoothly, I’d like to request 30% upfront and milestone-based payments every two weeks. Does that work for you?"

No ultimatums. No aggression. Just a simple, professional request.

And you know what?

The client agreed - without hesitation.

Why You Have More Control Than You Believe

Most businesses make the same mistake Priya did: they accept client terms because they think:

“This is just how it’s done.”

“I’ll seem difficult if I push back.”

“I might lose the project.”

But the truth is - Payment terms are negotiable. When you don’t negotiate, you set yourself up for:

1. Delayed Payments Hurt Your Business: Long cycles force you to cover costs out of pocket. Your bills can’t wait 90 days.

2. Absorbing All the Risk: No upfront payment means you’re betting on the client paying you later.

3. Cash Flow Crunches: Net 60 or Net 90 terms leave you scrambling to juggle finances or dipping into your reserves.

4. Sending the Wrong Message: Accepting unfair terms signals that your time, effort, and business come second to the client’s priorities.

How Priya Fixed It

After that first success, Priya revamped her entire payment process:

A) Upfront Payments for Security

She started every project with a 30% deposit.

B) Phased Payments for Stability

She tied payments to milestones, ensuring steady cash flow throughout the project.

C) Shorter Payment Cycles for Control

She replaced Net 60 and Net 90 terms with Net 15 or Net 30. For longer cycles, she requested partial prepayments.

The Result

Now?

- Priya doesn’t stress over covering expenses.

- She doesn’t spend her evenings chasing late payments.

- She focuses on her work, confident that her finances are secure.

Now if you’re stuck accepting every client’s payment terms without question, it’s time to take control. Here’s how:

Step 1 - Ask for Upfront Payments

A 20–50% deposit is fair and protects you financially.

Step 2 - Break Payments into Milestones

Tie payments to project progress to avoid waiting until the end.

Step 3 - Negotiate Shorter Payment Cycles

Counter long terms with partial prepayments to bridge the gap.

Step 4 - Be Professional, Not Demanding

Frame your terms as a way to ensure the project runs smoothly—not as an ultimatum.

Remember payment terms are not just random numbers, they’re the very foundation of your business.

Negotiate. Set boundaries. Protect your business.

Because a well-run business isn’t just about delivering great work - it’s about getting paid fairly and on time.