Why Use Payment Schedules?

Cash Flow Management

Get money earlier in projects
Reduce financial risk
Fund project expenses

Client Commitment

Deposit signals serious intent
Milestone payments confirm progress
Shared investment in success

Risk Mitigation

Don't deliver all work before payment
Limit exposure on large projects
Walk away points if needed

Common Payment Patterns

Deposit + Balance (50/50)

The most common structure:

50% deposit on contract signing
50% balance on project completion

Best for:

Small to medium projects ($2,000-$15,000)
New client relationships
Standard timelines

Thirds (33/33/34)

Split into three payments:

33% deposit
33% at midpoint milestone
34% on completion

Best for:

Medium projects with clear midpoint
4-8 week timelines
Moderate complexity

Quarters (25/25/25/25)

Four equal payments:

25% deposit
25% at Phase 1 complete
25% at Phase 2 complete
25% on final delivery

Best for:

Larger projects ($20,000+)
Phased work with distinct milestones
2-4 month timelines

Monthly Installments

Equal payments over project duration:

Example: $12,000 project over 3 months
$4,000/month

Best for:

Long-term projects
Client cash flow constraints
Ongoing development work

Milestone-Based

Payments tied to specific deliverables:

Discovery complete: $2,000
Design approved: $4,000
Development done: $5,000
Launch: $2,000

Best for:

Complex projects with distinct phases
When milestones are clearly defined
Client wants pay-for-progress

Setting Up Payment Schedules

In the Contract Wizard

Create contract from approved quote
Add Payment Schedule block
Configure milestones:

For each payment:

Description (e.g., "Deposit")
Percentage of total (e.g., 50%)
Or fixed amount
Trigger type

Trigger Types

On Contract Execution

Charged when contract is signed
Best for deposits
Requires saved payment method for auto-charge

Fixed Date

Due on specific calendar date
Good for known milestones
Example: "March 15, 2025"

Milestone

Triggered when you mark milestone complete
Manual trigger in Tillage
Best for deliverable-based payments

Days After Signing

Due X days after contract execution
Example: "30 days after signing"
Good for installments

Invoice Generation

Automatic Generation

When a payment is due:

Invoice created automatically
Line items from quote (or custom)
Amount matches payment schedule
Sent to client (if auto-send enabled)

Manual Trigger

For milestone-based payments:

Go to contract
Mark milestone complete
Invoice generates
Review and send

Configuration Options

Per Payment

Name/Description - What's this payment for
Amount - Percentage or fixed
Trigger - When it's due
Auto-send - Email automatically

Per Schedule

Default due days - Days until payment due
Invoice template - What line items to include
Email template - Custom message

Invoice Line Items

From Quote

Default: Invoice includes original quote line items

Full details preserved
Professional presentation
Client sees what they're paying for

Summary Style

Single line item:

"Deposit - 50% of project total"
Cleaner for partial payments
References full quote

Custom

Define specific line items per payment:

Different descriptions
Adjusted quantities
Milestone-specific content

Smart Variables for Names

Use variables in payment names:

{projectName} - Deposit

→ "Website Redesign - Deposit"

{clientName} - Milestone 1

→ "Acme Corp - Milestone 1"

Example Configurations

Website Project ($15,000)

Payment	Amount	Trigger
Deposit	50% ($7,500)	On signing
Final	50% ($7,500)	On completion

App Development ($50,000)

Payment	Amount	Trigger
Deposit	25% ($12,500)	On signing
Design Complete	25% ($12,500)	Milestone
Beta Launch	25% ($12,500)	Milestone
Final Launch	25% ($12,500)	Milestone

Monthly Retainer ($3,000/month)

Payment	Amount	Trigger
Month 1	$3,000	On signing
Month 2	$3,000	30 days
Month 3	$3,000	60 days
(continues...)

Or use Ongoing Services block for true recurring.

Handling Overdue Payments

Automatic Reminders

Configure in Settings:

First reminder X days overdue
Follow-up every Y days
Maximum reminders

Pause Project

Option to hold work:

Communicate clearly
Reference contract terms
Resume when paid

Escalation

For persistent non-payment:

Personal outreach
Collection procedures
Contract termination

Modifying Schedules

Before Signing

Edit freely in contract
Adjust percentages, triggers, amounts
Add or remove payments

After Signing

More limited:

Create invoice amendments
Negotiate changes with client
Document any modifications

Best Practices

Start with Deposit

Always require upfront payment
Signals client commitment
Covers initial project costs

Match Project Phases

Align payments with deliverables
Clear connection between payment and progress
Easy to justify to clients

Keep It Simple

Fewer payments = less admin
2-4 payments for most projects
Only add complexity when needed

Clear Triggers

Unambiguous milestone definitions
Specific dates when possible
Both parties understand expectations

Auto-Charge When Possible

Faster payment collection
Less manual follow-up
Client agrees at contract signing

Client Communication

In the Quote

Mention payment terms:

"50% deposit required to begin"
"Milestone payments as outlined in contract"

In the Contract

Clearly specify:

Exact amounts and dates
What triggers each payment
Late payment consequences

During Project

Remind before milestones
Celebrate completion points
Thank for payments received

Related: Contracts | Invoicing | Quote-to-Cash