Deposits and milestones: how freelancers protect their cash flow
Late-paying clients can sink a profitable business. A deposit does two jobs: it puts cash in before you spend your own time, and it shows the client is committed. Milestone payments extend the same idea across longer projects.
A worked example
On a S$9,639.25 quote including GST, a 50% deposit is S$4,819.63 on acceptance. The balance is the total minus the rounded deposit, S$4,819.62, so the figures add up to the cent. The free QuoteFlow tool warns you when a deposit is under 30%, because below that you carry most of the cash risk.
Choosing a deposit
- Short projects: a larger deposit, often half, with the balance on delivery.
- Longer projects: a smaller deposit plus milestone payments tied to approvals.
- New clients: ask for more upfront until you have a payment history together.
- Projects with big pass-through costs: cover those costs in the deposit so you are not financing them.
Milestones that work
A common shape is a split such as 40%, 30% and 30%: on acceptance, on design approval, and on launch. Tie each payment to something you can point to, such as an approved design or a delivered build, so nobody argues about whether a milestone was reached.
Creative ways to use it
- Link the deposit to the start date. Say work is scheduled once the deposit arrives, and the quote validity date keeps that promise fair.
- Offer a choice. A small discount for payment in full upfront can help your cash flow more than it costs.
- Write payment terms into the proposal. State the schedule, the due dates and what happens if a milestone is delayed. Check the wording suits your local rules.
Pro (Business licence), coming soon: Build milestone schedules, offer package options, and keep quotes saved with their payment terms. Join the Pro waitlist.
Try it with your own numbers
Set your deposit in the free QuoteFlow calculator and see the deposit and balance update. Find your minimum rate first in RateFlow.
Numbers are examples in Singapore dollars. Estimates only; not financial, tax or legal advice. Check payment terms and late-payment rules where you operate.