What Are Payment Terms?
Payment Terms refer to the specific conditions under which a client agrees to pay a freelancer or service provider for work completed. These terms outline the payment schedule, methods, deadlines, and any penalties for late payment to ensure clarity and protect both parties in a freelance agreement.
Context & Usage in Freelancing:
In freelancing, payment terms are typically included in contracts or project agreements. They may specify milestones, deposits, final payments, or hourly billing. Clear payment terms help freelancers manage cash flow and set client expectations, often involving tools like invoicing software or payment platforms such as PayPal or Stripe.
Importance:
Well-defined payment terms protect freelancers from payment delays and disputes, enabling timely and predictable income. They also build trust and professionalism in client relationships, reducing misunderstandings and fostering smoother project completion.