Should I ask clients for advance payment?
Yes, for most service work. Bill monthly retainers in advance, take 30 to 50 percent upfront on projects, and bill the rest on milestones. Explain it simply as standard terms, put it in the proposal, and send a proforma invoice for the advance. PalmGro Flow handles proposals, invoices and milestone tracking.
Why advances are normal
Your team's time is your cost. Starting work without any payment means you fund the client's project. Advances also confirm the client is serious and reduce late payments at the end.
Common structures
- Monthly retainers: full month billed in advance on a fixed date.
- Small projects: 50 percent advance, 50 percent on delivery.
- Larger projects: 30 to 40 percent advance, then payments tied to milestones.
- Ad management: ad spend paid by the client directly to the platform; your fee in advance.
How to ask without awkwardness
Write it in the proposal as standard terms: "Work begins after the advance payment." Most clients accept terms that look normal and are stated upfront. Asking later feels like distrust.
Milestone billing
Break projects into milestones with dates: design approved, development done, launch. Bill at each milestone. Clients see progress, and you get paid as you go. See agency project management.
If a client refuses any advance
Consider a smaller first milestone, a trial task or a shorter payment term. If they refuse all of these, the risk of non-payment is high.
How PalmGro Flow helps
PalmGro Flow lets you put advance terms in proposals, raise the advance invoice, track projects and milestones, and bill at each milestone. Payments link to the client, so you always see how much has been paid against the project value.
Questions people ask
How much advance should I take for a website project?
40 to 50 percent is common for small projects, with the rest on launch or in milestones.
Is GST payable on advances?
GST rules on advances differ for goods and services. Ask your CA how to treat advances in your case.
Should repeat clients also pay in advance?
For retainers, yes. For trusted long-term clients, you may relax project terms if they always pay on time.
PalmGro Flow brings your team, clients, tasks, attendance and money into one place, on phone and computer. Try it free, no card needed.Set it up for your team in minutes.