Should you invoice before you start work, after you deliver, or somewhere in between? The answer depends on the project, the client relationship, and how much risk you're willing to take. Here's a practical guide to invoice timing.
The Short Answer
For most freelancers and contractors, the best approach is both: invoice a deposit before you begin, and invoice the remainder upon completion. This splits the risk fairly between you and the client.
When to Invoice Before Work Starts
Invoicing upfront — or partially upfront — makes sense when:
- It's a new client. You have no payment history with them. A deposit proves they're serious and financially able to pay.
- The project requires significant upfront investment. If you need to buy materials, software licenses, or block out large chunks of your calendar, a deposit covers your exposure.
- The project is large. For projects over $2,000, a 50% upfront deposit is standard practice.
- You're in a high-demand field. If you have a waitlist or limited availability, a deposit secures your time commitment.
Common Deposit Structures
- 50/50: 50% upfront, 50% on delivery (most common)
- 30/30/40: 30% to start, 30% at midpoint, 40% on completion
- 100% upfront: Common for small projects under $500 or productized services
When to Invoice After Work Is Complete
Invoicing only after delivery works when:
- You have an established relationship. You've worked with this client before and they pay reliably.
- The project is small and quick. A 2-hour task doesn't always warrant a deposit process.
- The client is a large company with formal procurement. Many corporations only process invoices after work is delivered and approved. Pushing for upfront payment may disqualify you from the project.
- You're billing hourly. Time-based work is typically invoiced weekly, biweekly, or monthly in arrears.
Milestone-Based Invoicing
For longer projects (2+ months), milestone invoicing is often the best approach. You invoice at predefined project stages:
| Milestone | Invoice % | Trigger |
|---|---|---|
| Project kickoff | 25% | Contract signed |
| First draft / wireframes | 25% | Deliverable submitted |
| Revisions complete | 25% | Client approves revisions |
| Final delivery | 25% | Project complete |
Milestone billing keeps cash flowing throughout the project and prevents the nightmare scenario of completing months of work before finding out the client can't (or won't) pay.
How Quickly Should Clients Pay?
Your payment terms dictate when payment is expected after you send the invoice:
- Due on receipt: Payment expected immediately (best for deposits and small invoices)
- Net 15: Payment due within 15 days (good for freelancers)
- Net 30: Payment due within 30 days (standard for business-to-business)
- Net 60+: Avoid this if possible — two months is a long time to wait for your money
What to Do When Payment Is Late
Even with perfect invoice timing, late payments happen. Protect yourself:
- Include late fees in your contract — typically 1.5% per month on overdue balances
- Send a reminder on the due date — a simple "just checking in" email
- Follow up at 7, 14, and 30 days past due — escalate the tone gradually
- Pause work on ongoing projects if payment is significantly overdue
The Bottom Line
Don't be afraid to invoice early. Requiring a deposit before work begins is a professional standard, not an insult. The best approach for most projects:
- Small projects (<$500): 100% upfront or on completion
- Medium projects ($500-$5,000): 50% upfront, 50% on delivery
- Large projects ($5,000+): Milestone-based invoicing (25% increments)
Whatever schedule you choose, make sending the invoice effortless. InvoiceBloom lets you create professional invoices in under 2 minutes and tracks payment status automatically — so you always know who owes you money and when it's due.