Payment terms are more than legal language. They are a risk management tool that shapes when money lands in your account. The most effective terms balance predictability for your team with flexibility clients can accept.
Start with your cash flow needs
Map out when payroll, rent, and supplier invoices are due. Work backward to set invoice due dates that keep your operating account healthy. Many Plaen customers adopt 50% upfront, 40% on delivery, and 10% on approval for project work while retainers follow a simple net-15 cadence.
Align terms with scope
Long, complex engagements justify milestone billing; shorter engagements do not. If a delivery will take more than a month, break it into phases so both sides can review work and cash flow gradually. Mention the milestones in the contract and mirror them inside every invoice.
Clauses to consider
- Prompt payment discount: Offer 2% off when paid within seven days.
- Late fee policy: Apply a simple monthly percentage after a defined grace period.
- Delivery hold: Pause ongoing work if outstanding invoices exceed a threshold.
- Approval window: State how many days clients have to dispute charges.
Communicate expectations early
Share your terms during the proposal stage and include them in the signature package. When onboarding new clients, walk their finance team through the invoice format, payment options, and reminder schedule. Transparency prevents last-minute surprises.
Automate enforcement
Plaen can trigger reminders, apply late fees, and alert account managers when invoices remain unpaid. Automation keeps the tone consistent and removes the emotional weight from your team. Combine these alerts with a monthly review meeting so leadership can jump in where necessary.
Strong payment terms give creative and operations teams the freedom to focus on delivering excellent work. Revisit your policies twice a year, adjust them as the business evolves, and let Plaen handle the repetitive follow-up.