As a freelancer, getting paid fairly and on time is crucial to your success. But without clear payment terms, you risk delayed payments, disputes, or even unpaid work. To protect yourself, here are eight must-have payment terms every freelancer should include in their contracts.
1. Payment Amount & Currency
✅ Clearly state how much the client needs to pay and in which currency.
📌 Example: “The total project fee is ₱50,000 PHP.”
💡 Why it matters: Avoid misunderstandings caused by currency differences, especially with international clients.
2. Payment Schedule
✅ Define when and how often you’ll be paid (e.g., upfront, milestones, or post-project).
📌 Example:
- 50% upfront, 50% upon completion
- Monthly payments for ongoing work
💡 Why it matters: Ensures you get paid regularly and discourages project abandonment.
3. Accepted Payment Methods
✅ Specify which payment platforms you accept (e.g., PayPal, Wise, GCash, direct bank transfer).
📌 Example: “Payments can be made via GCash or BPI bank transfer.”
💡 Why it matters: Avoids confusion and ensures clients can easily pay you.
4. Late Payment Penalties
✅ Set a late fee policy to encourage timely payments.
📌 Example: “A 5% late fee will be applied for payments past the due date.”
💡 Why it matters: Discourages clients from delaying payments.
5. Refund & Cancellation Policy
✅ Define what happens if a client cancels a project after work has started.
📌 Example:
- “Deposits are non-refundable.”
- “If the project is canceled after 50% completion, client must pay for work done.”
💡 Why it matters: Protects you from lost income due to last-minute cancellations.
6. Revisions & Extra Work Fees
✅ Specify how many revisions are included and the cost of additional work.
📌 Example: “The project includes two free revisions. Additional revisions cost ₱1,000 per round.”
💡 Why it matters: Prevents clients from asking for unlimited changes.
7. Project Completion & Final Payment
✅ Clearly state when the final payment is due and what’s included in the final delivery.
📌 Example: “Final payment is due before delivering final files.”
💡 Why it matters: Ensures you’re paid before handing over completed work.
8. Dispute Resolution
✅ Outline how disputes will be handled if issues arise.
📌 Example: “Any payment disputes will be resolved through mediation before legal action.”
💡 Why it matters: Protects both you and the client from unnecessary legal troubles.
Secure Your Payments, Secure Your Business
Having clear payment terms helps protect your income, set client expectations, and avoid payment issues. Before starting any project, always use a contract with these key terms in place.
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