Late payments are more than annoying; they’re a threat to your business survival.

Freelancers and small businesses aren’t banks. You shouldn’t be floating clients for 30, 60, or 90 days. But if your contract doesn’t back you up, you’re going to run into delays, ghosting, and endless "checking with accounting" emails.

At Counsel Club, we’ve seen what works (and what doesn’t). Here’s what to include in your freelance agreement to get paid on time, and protect your cash flow.

1. Clear Payment Terms (Net 15, Net 30, or Custom)

Don't let your contract say “payment upon completion” or “upon approval.” That’s vague, and risky. Instead, set a specific timeline, like:

• Net 15: payment due 15 days after receipt of invoice
• Net 30: payment due within 30 days (only if you trust the client)
• Milestone-based: payment after each phase of work. With milestone payments, we suggest including a deposit upfront of 25%-50%.

2. Late Payment Fees

Late fees aren't just about the money. They create urgency. If you don’t include one, there’s no penalty for missing your due date.

• Example clause: “A late fee of 1.5% per month (18% annually) will apply to overdue balances.”

Even if you never enforce it, it sets expectations — and gives you leverage if payment goes sideways.

2. Upfront Payments or Deposits

Start with skin in the game. A deposit shows commitment, and reduces your risk.

• Ask for 25% to 50% upfront, before any work begins
• Alternatively, require a kickoff payment due on signing

This protects your time and gives you some cash flow early on.

👉 Pro tip: Here is an example of ideal payment language. "Payment is due 50% upon execution of the agreement, and 50% upon completion of the Services, in each case net 15 from receipt of invoice." Amicus can help you draft more permutations.

4. Kill Fee or Early Termination Clause

What happens if a client pulls the plug halfway through? Without a kill fee, you might be left unpaid for hours of work.

• Kill fee language: In the event that a client can terminate without cause (meaning you did not breach the agreement), you should make it more painful by requiring a payment that is equal to more than just the work completed (a penalty).

👉 Pro tip: Here is some master kill fee language: "If the project is terminated early, the client agrees to pay for all work completed to date, plus a termination fee of [$X or % of the total project fees.”

5. Invoicing Details: When, Where, and How

This part’s often overlooked, but it’s critical. Spell out:

• When you’ll invoice (e.g. “at project start,” “on the 1st of each month”)
• How you’ll invoice (e.g. email, client portal)
• Accepted payment methods (e.g. ACH, credit card, PayPal)

The fewer questions your client has, the faster you’ll get paid.

6. Pause Work for Nonpayment

If you’re not getting paid, you shouldn’t be working. Your contract should say so.

• Clause to include: “If any invoice remains unpaid for more than 10 days past its due date, Services will pause until the balance is paid in full.”

It’s not harsh, it’s professional. You should only provide free work, when it's YOUR choice.

TL;DR: Contracts That Get You Paid

Want to get paid on time as a freelancer? Your contract needs to work just as hard as you do. The right payment terms set the tone, manage client expectations, and give you real leverage if things go off-track.

Counsel Club makes this easy. Use our lawyer-crafted contract templates, then customize them with Amicus, your personal legal assistant. Whether you're a designer, developer, strategist, or creative studio — you deserve to be paid fairly, and on time.

→ Need a payment-ready freelance contract? Join Counsel Club and get started for free.