Communication with the client: at what stage to ask for an advance payment?

Question

Freelance

The question arose, what is the business practice regarding at what stage to take an advance payment from the client?
What are the main stages of the initial relationship can be distinguished?
For example, a client responds (finds us himself or after sending our offer on the exchange), sends a technical specification, we analyze it, make corrections, agree on it, etc.
When to ask for an advance payment? How to build relationships?
I am interested in the situation both from a single freelancer and from a legal entity agency.

Answer 1

Personally, I take an advance payment at the second stage of development, when some small part is already completed. I preface the discussion of this topic with some kind of marketing phrase, such as "I work without an initial prepayment, only after some results", as a rule, this captivates the client, and I, in turn, do not take much risk if he jumps off.

Answer 2

"Hello! Please prepare your money" (c)

Answer 3

Obviously, this moment should be indicated to the client as early as possible.

Answer 4

On any.
To begin with, nevertheless decide - are you customer-loyal or reduce risks?
Here and there it is impossible.
In the first case, ask $ for adding value to the client's business. In the second - for the fact that you read to spend your strength.

Answer 5

Two options
1) Immediately after the customer has decided that you are implementing the project
2) After discussing the terms of reference

Answer 6

When to ask for an advance payment? How to build relationships?

I'll show you with my example. I always single out three important, in my opinion, points in the TOR:
1. The Contractor undertakes to begin work on this Terms of Reference within three working days from the date of receipt of an advance payment of XX% of the project cost and all necessary materials from the Customer, for example: purchased materials in photo / video stocks (the wording is something like: "the sooner you pay, the sooner we start").
2. The total term for the performance of work XX working day (or calendar day).
3. In the event of a change in the scope of work at the initiative of the Customer, the cost and terms are subject to change on the basis of an additional technical assignment.
Project cost - XXXX c.u.
Double payment - an advance of XX% of the project cost. The final payment for the project after its delivery, XX% of the project cost, is carried out no later than 10 working days after the transfer of the project to the Customer.
1. Substantial amendments are amendments that lead to a change in the existing terms of reference. The cost and terms are subject to change on the basis of additional terms of reference.
2. Minor amendments are amendments within the framework of the existing terms of reference, the introduction of which is included in the total scope of work and is not subject to additional payment. These amendments may be made during the total period of work performance or no more than XX working days from the date of advance payment.