Most freelancers should take part of the fee before starting, commonly 30% to 50%, and split the rest across milestones with the final payment due before the final files are released. An advance is the simplest protection against non-payment, and clients accept it more readily when it is tied to a defined first phase of work and written into the contract.
Yes, on almost every project. An advance confirms the client is serious, covers your time for the first phase, and limits how much you can lose if they disappear. A client unwilling to pay anything upfront is telling you something useful before you start.
It is normal commercial practice. Framed as the first milestone of the project and not as a deposit of trust, it rarely causes friction.
For small projects, 50% before work starts and 50% before final delivery is common. For larger ones, 30% to 40% upfront with the balance spread over milestones works better. For very short jobs or new clients, full payment in advance is reasonable.
Set the figure by exposure. Ask how much unpaid work you would have done before the next payment falls due, and keep that number tolerable.
Tie each payment to something the client can see and approve. Sample wording: “The Fee is payable as follows: 40% on signing; 30% on approval of the first draft; 30% before release of the final files. Each invoice is payable within seven days.”
Keep the last payment before final handover, not after. A balance that falls due after the client already has everything is the one most often left unpaid.
It depends on the wording and on how much work was done. A clause that keeps the whole advance regardless of the work can be challenged as a penalty. Under Section 74 of the Indian Contract Act, 1872 a party is entitled to reasonable compensation, not an arbitrary forfeiture.
Safer wording ties the advance to work: “The advance covers the discovery and first-draft phase. If the Client cancels, the advance is retained to the extent of work completed and committed time, and any balance is refunded.”
State it as your standard terms, in the proposal, before any discussion of price. For example: “I work on a 40/30/30 milestone basis, with the first payment due on signing.” Avoid apologising for it or presenting it as optional.
If a client pushes back, reduce the first milestone, not the principle. A smaller first phase with a smaller payment keeps you protected.
Give yourself the right to pause. Sample wording: “If any payment is overdue by more than seven days, the Service Provider may suspend work until it is received, and timelines extend by the period of suspension.”
Add a late-payment interest rate as well. Both clauses, with the rest of the agreement, are in the freelance contract template.
Commonly between 30% and 50% of the fee before starting, with the balance tied to milestones and the final payment due before final files are released.
You can generally retain it to the extent of work done and time committed. A blanket non-refundable clause is open to challenge, so tie the advance to a defined phase of work.
If you are registered for GST, tax treatment of advances for services has its own rules, so confirm the timing with a tax professional. See the GST guide for the basics.
Offer a smaller first milestone or a paid trial phase. If they still refuse any upfront payment, weigh the risk carefully before starting.