Master Your Payment Terms: Fearless in Your Value

Let’s get real—if you’re running a business and you haven’t mastered your payment terms, you’re actively sabotaging your efforts. This is especially true for freelancing and consultancy businesses.

Do you think you can coast along without a solid payment structure? Think again.

Cash flow isn’t something you figure out later; it’s the foundation of your entire operation. No cash flow equals dead business. 

If you’re still too timid to lay down the law on how and when you get paid, it’s time to wake up and get fearless. You don’t have the luxury to wait or hope clients will just do the right thing—take control now or get crushed by delays, excuses, and endless chasing for money. You teach people how to treat you, and business is no different. 

Here’s how you become unapologetically bold about getting what you deserve.

Before You Even Start: Know Your Value

Most freelancers undersell themselves, and it’s pathetic. If you don’t know your worth, you’re easy prey for clients who’ll lowball you into oblivion. And it’s not just about the hours you’re billing; it’s about the years of experience, the skills you bring, and the results you deliver. Own it.

Research Industry Standards: You've already lost if you don’t know what others in your field are charging. You need to benchmark yourself against your peers and understand the global market rate, because your competition isn’t just local anymore.

Value Your Experience: You’re not just billing for tasks. You’re billing for the time, sweat, and expertise that make you valuable. You’ve put in the work, and you need to charge accordingly.

Raise Your Rates Every Year: No excuses, no apologies. If you’re not adjusting your rates annually to reflect your growing expertise and inflation, you’re just another freelancer falling behind.

Setting Up Payment Terms: Clear, Direct, and Uncompromising

If you’re not upfront and transparent about how you expect to be paid, don’t cry when clients walk all over you. You’re running a business, not a charity. Stop being vague, and start setting boundaries that ensure you get paid when and how you want.

Be Upfront and Transparent: Spell out every last detail—your rates, deadlines, and your payment schedule. If anything’s left unclear, you’re leaving the door wide open for disputes and delays.

Late Fees Are Recommended: You're a fool if you’re not including late fees in your contracts or clear clauses on what happens to your payment when someone breaks the contract. You need to protect yourself against slow payers and bad actors. Nothing motivates a client to cough up the cash like a penalty hanging over their head.

Negotiate Fearlessly: Stop letting clients dictate how you get paid. This is your livelihood, not theirs. If a client pushes back on your payment terms, push right back. They hired you because they need your skills, not because they get to call the shots.

During the Project: Milestones Keep You in Control

Projects can drag on forever if you let them, and guess what? So can getting paid. Divide your work into milestones, so you’re getting paid as you go—not just at the end when everything’s done and the client’s already checked out.

Set Clear Milestones: No more waiting until the project’s complete to send an invoice. Tie your payments to specific project phases. If the client wants progress, they need to pay for each step along the way. No payment? No more work.

Deliver Value: Let’s be blunt—you’re only as good as your last project. Each milestone is an opportunity to show your value and remind the client exactly why you’re charging what you do.

Stay in Constant Communication: You don’t get to disappear and hope the work speaks for itself. If there are delays, communicate them before they become a problem. You stay in control by staying ahead of the conversation.

After the Work Is Done: Get Paid—No Excuses

The project’s done, the work is complete—now, it’s time to get what’s owed. No more sitting around waiting for the client to magically remember they owe you money. You need to go out there and get it.

Invoice Immediately: Stop being passive about your payments. The second the work is done, you send that invoice. Don’t give clients any wiggle room or time to “forget” you exist.

Offer Multiple Payment Options: Make it easy for them to pay you, but that doesn’t mean bending over backwards. Offer options, sure, but make sure those options work for you.

Follow Up Fearlessly: If they’re late paying, follow up. Be direct, be firm, and don’t back down. You did the work. They owe you the money. Period.

Pro Tips for Serious Freelancers

If you want to play at the next level, lock down these payment strategies. Stop acting like a rookie and start securing your cash flow like a pro.

Demand a Deposit: No deposit, no work. That’s how you weed out the clients who’ll jerk you around. For big projects, always ask for a deposit upfront. It covers your time and guarantees the client’s serious.

Build Real Relationships, Not Transactions: The goal isn’t just to get paid once. It’s to build a client base that comes back again and again. But those relationships need to be built on mutual respect, starting with setting solid payment terms from the beginning. Offer retainer payment models for repeat work and keep the cashflow coming in. 

Optimise Cash Flow: Incentivize early payments, use invoicing software, and never leave cash flow up to chance. If you’re sitting around waiting to get paid, you’re doing it wrong.

Key Payment Terms That Will Save You

Understanding payment terms isn’t just about looking professional—it’s about protecting yourself and ensuring you get paid. Know them, use them, and don’t compromise.

Payable Upon Receipt: This is what you want—clients pay you the second they get your invoice. No waiting, no delays.

Payment in Advance: The holy grail. You get paid upfront before you do any work. No risk, all reward.

Milestone Payments: Break up the project, and get paid for each part as you go. This keeps your cash flow healthy and ensures the client is as committed to the project as you are.

Net 10, 20, 30: These terms give clients 10, 20, or 30 days to pay. Choose what works for you, but remember—you don’t have to offer longer terms just because they ask for it.

Early Payment Discounts: Sometimes, a little incentive can go a long way. Offer a small discount if the client pays early. It’s better to get paid less, faster, than to wait forever for full payment.

Choosing the Right Payment Methods: Don’t Let Fees Eat Into Your Hard-Earned Cash

Not all payment methods are created equal. You need to pick ones that work for you and make sure you’re not getting hit with fees that cut into your earnings.

Digital Wallets: They’re fast and convenient, but always watch out for transaction fees—especially with international clients.

Bank Transfers: Reliable, but check the fine print on international payments. Always factor fees into your rates so you don’t end up footing the bill.

Think Bigger: Fearlessly Expand Your Freelance Empire

Freelancing isn’t just about doing the work in front of you. You need to constantly be thinking about how to expand, grow, and make more money. That means diversifying your income streams and being fearless in your ambition.

Revisit Your Rates: Every year, no exceptions. If you’re still charging last year’s rates, you’re losing money. Don’t wait for inflation to catch up to you—stay ahead of it.

Diversify Your Clients: Relying on one or two clients is a recipe for disaster. You need to spread the risk and bring in new clients regularly.

Upsell and Cross-Sell: Don’t just settle for the project at hand. If a client trusts you enough to hire you, offer them additional services. Show them the value you bring and watch your revenue grow.

Monetise Your Expertise: Stop thinking small. You can turn your skills into workshops, online courses, consulting gigs, and more. The world is full of opportunities if you’re fearless enough to take them.

Own Your Payment Terms, Own Your Future

Freelancers who aren’t fearless about their value get left behind. If you’re still tiptoeing around how and when you get paid, you’re doing it wrong. Be bold, be direct, and set payment terms that protect your business. When you take control of your cash flow, you take control of your entire freelance future. Don’t settle for anything less.

Lastly, I will leave you with this quote from one of my favourite films - in case you find yourself falling back into being too nice with clients that are willing to take the piss. 

Want to see if you’re ready to embrace the freelancing lifestyle? Download my free ebook here: https://mailchi.mp/afccaff52a96/the-freelancing-revolution-ebook

Curious about whether freelancing makes financial sense? Try my risk calculator for free: https://mailchi.mp/8862aa51e803/risk-calculator.