What does payment in advance mean?
With payment in advance (also called prepayment), the client pays the full amount, or part of it, before the service is delivered. This is common in online retail: goods are only shipped once payment has been received.
For services, payment in advance is less common, because at the time of paying the client doesn't yet have anything in hand. That's why it's usually agreed as a deposit or staged instead.
Invoicing for payment in advance: template & wording
An invoice for payment in advance includes the same mandatory details as any invoice. If it's issued before the work is done, it should state the expected delivery period. Example wording (adapt to your case):
- "Work begins once the advance payment of €1,500 (example amount) has been received."
- "Please transfer the amount by [date]. The project starts once payment is received."
- "The advance payment is credited in full against the final invoice."
Pros and cons of payment in advance
- For service providers: no risk of non-payment, predictable cash flow, no need to chase invoices.
- For clients: full risk if the work isn't delivered, or delivered poorly. Getting the money back is a hassle.
- Result: many clients reject paying 100% upfront, so the project starts later – or not at all.
Payment in advance without the trust problem: a secured budget
With a milestone payment link like Stipme, the client pays before the project starts, but not to you: the budget sits with the payment partner Stripe. It's paid out per milestone once the client approves or the review period ends. You get the security of payment in advance, while your client keeps control until delivery.