How to ask a client for a deposit

A deposit protects the party who cannot walk away cheaply, and on most jobs that is you. Asking for one is a scheduling decision as much as a financial one: it is what turns a date somebody mentioned into a date somebody has committed to.

How much

  • Enough to cover what you buy or commit before you are paid — materials, subcontractors, a held date
  • Enough that walking away costs the client something
  • Not so much that a new client is handing a stranger most of the job's value

For service work a third or a half is ordinary. Where materials dominate, the deposit usually covers the materials and the labour follows on completion.

Ask for it as a term, not a favour

"Work starts once the deposit is received" is a term of business. "Would it be possible to pay something up front?" is a request the client can decline without declining the job, which is the worst of both outcomes.

Invoice it so the end still adds up

  1. Invoice the deposit as its own document

    A deposit invoice with its own number is what the client's accounts payable needs in order to pay it at all.

  2. Show it as a deduction on the final invoice

    The final invoice states the full value of the work, then the deposit already paid as a separate line, then the balance due. A final invoice that quietly shows only the balance cannot be checked against the quote.

  3. Keep the dates straight

    Payment terms on the balance run from the final invoice, not from the deposit.

A 50% deposit invoice

Half up front and half on completion is the split clients recognise most easily. The deposit invoice names the whole job and its full price, then asks for half of it as a single line marked as the deposit, with its own number and its own due date. The second half is a separate final invoice at the end, which shows the full price again, subtracts the deposit already paid, and asks for the balance: how to invoice the remaining balance covers that one.

A deposit is easiest to ask for once the client has seen the whole figure it is a share of. If you have not sent one yet, price the job with the free estimate generator first, then invoice the deposit against it.

Deposits are routine wherever a date is held for one client and turned away from others: the catering quote template, the event planning estimate template and the photography invoice template each deal with one.

Make a deposit invoice

Common questions

Is a deposit the same as a retainer?
No. A deposit is part of the price of a specific job, paid early. A retainer buys availability over a period, and may or may not be drawn down against work.
What if a client refuses to pay a deposit?
Ask why. A large buyer may genuinely be unable to pay before delivery, in which case stage the work instead. A small client who simply does not want to is telling you something about how the final invoice will go.
Should a deposit be non-refundable?
It can be, if you say so in advance and the amount is proportionate to what you actually lose. A large non-refundable deposit with no stated reason is the kind of term that gets challenged.

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