Clause #3: Designer will be paid for [services
rendered] with the following schedule. First payment is due before work
will begin on [name of first deliverable]…
In plain language: Don’t offer credit to any new client, no matter what. Provide a payment schedule that mandates a payment in advance of each phase.
Why would you use this clause? Because you should never
do work for a client without a deposit. That is, unless you have credit
to extend to everyone you work with, you can cover three to four months
of your overhead without a cashflow issue, you can afford to give
clients room to balk at payment due to issues that you can’t control,
and you can otherwise live in fear of closing a deal because your
client is having liquidity issues of their own but still wants to work
with you. Can’t you just be a little more flexible in the payment
The answer here should be a gentle but firm no. If they
can’t pay you up front to start your project, then you’re already
hearing the warning bells about how the upcoming work might play out.
If they’re a long-term client, then this becomes less of an issue as
you establish credit terms. And if you’re really concerned, you can run
a credit check on your client to be sure they can pay that $200,000
fee. This is not outside the realm of possibility for any designer to
conduct, especially when you are looking to secure large-scale projects.
Posted by Megan