# Payment Schedules Guide

Payment schedules let you structure when and how you get paid on projects. This guide covers common patterns and how to configure them in Tillage.

## 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

1. Create contract from approved quote
2. Add **Payment Schedule** block
3. 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:
1. Invoice created automatically
2. Line items from quote (or custom)
3. Amount matches payment schedule
4. Sent to client (if auto-send enabled)

### Manual Trigger

For milestone-based payments:
1. Go to contract
2. Mark milestone complete
3. Invoice generates
4. 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

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*Related: [Contracts](/llms/features/contracts.txt) | [Invoicing](/llms/features/invoicing.txt) | [Quote-to-Cash](/llms/guides/quote-to-cash.txt)*