Payment Terms on Quotations: Options and Examples

Clear payment terms decide whether a good job feels like a good job when the bank balance arrives. They're easiest to agree before work begins, which makes the quotation the right place for them.

Common options

Full payment upfront

Best for small jobs, low-cost items and new clients. "Payment in full is required to confirm your order."

Deposit and balance

Popular for trades and custom work. "50% deposit to confirm, balance on completion." The deposit covers early costs and shows the client is serious.

Milestone payments

Suited to longer projects. "30% on signing, 40% when the frame is complete, 30% on handover." Link payments to something both sides can see.

Payment after delivery

Often expected by larger companies. "Payment due within 30 days of invoice." Only offer this if you can afford to wait, and to clients you trust.

How to choose

Ask how much money you must spend before you get paid. If materials are expensive, ask for a deposit that covers them. If the client is new, ask for more upfront. If the client is an established repeat customer, you may be able to relax.

Details to include

• The exact amount or percentage for each payment.
• When each payment is due.
• Accepted payment methods and bank details, if appropriate.
• What happens if payment is late, such as work pausing.

Protect yourself politely

Clients rarely object to reasonable terms stated in advance. It's far harder to ask for a deposit after work has begun. If a client refuses any upfront payment on a large custom job, consider that useful information before you buy materials.

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