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