A deposit protects you. It covers your initial costs, reduces the risk of a client cancelling after you've ordered materials, and filters out time-wasters who aren't serious about going ahead. Most clients expect tradespeople and freelancers to ask for a deposit — it's standard practice, not a red flag. Here's how to do it properly.
Why You Should Charge a Deposit
A deposit isn't about distrust. It's about risk management. Without one, you absorb all the financial risk of a job before it starts — ordering materials, blocking out time, turning down other work. If the client cancels, you're out of pocket with nothing to show for it.
A deposit shifts some of that risk back to the client, where it belongs. It also:
Confirms the client is serious about going ahead
Funds your initial material costs without eating into your cash flow
Gives you recourse if the client cancels at short notice
Sets a professional tone for the engagement from the start
How Much to Charge
There's no universal rule, but common practice varies by job type:
Trade jobs (plumbing, electrical, carpentry): 25–50% upfront, balance on completion
Larger builds or renovations: Staged payments — deposit, progress payment at midpoint, balance on completion
Freelance projects (design, development, writing): 50% upfront, 50% on delivery
High material cost jobs: Up to 100% of material costs upfront, with labour invoiced separately on completion
The right amount depends on your costs, the job size, and your relationship with the client. A new client on a large job warrants a higher deposit than a repeat client on a small one.
How to Ask for a Deposit
The easiest approach: include your deposit requirement in your quote, before the client agrees to go ahead. That way it's part of the original agreement — not something you bring up after they've said yes.
In your quote, include a line like:
"Payment terms: 50% deposit required to confirm booking. Balance due on completion. Work will commence once the deposit is received."
When you're ready to start, send a deposit invoice — a standard invoice for just the deposit amount, clearly labelled as such. This gives the client a proper document to pay against and keeps your records clean.
What to Put on a Deposit Invoice
A deposit invoice follows the same format as a regular invoice, with a few specific elements:
Label it clearly: "Deposit Invoice" or "Invoice — Deposit (50%)"
Reference the original quote number
State the deposit amount and what percentage it represents
Include the total project value so the client can see the full picture
State when the balance will be invoiced
Example line items:
Description | Total |
|---|---|
Deposit – 50% of total project value (ref: Q-012) | $1,250 |
Balance due on completion | $1,250 |
Total project value | $2,500 |
Amount due now: $1,250
When to Send the Final Invoice
Send the final invoice the day the job is complete — not a week later. Deduct the deposit clearly as a line item so the client can see exactly what they've already paid and what's outstanding.
Example final invoice deduction:
Description | Total |
|---|---|
Labour – [description] | $1,600 |
Materials – [description] | $900 |
Less deposit paid (INV-041) | -$1,250 |
Total Due: $1,250
What If the Client Refuses to Pay the Deposit?
A client who won't pay a deposit before work starts is telling you something. That doesn't mean they're dishonest — some people are just unfamiliar with how trades and freelancers work. Explain why you ask: materials need to be ordered, time needs to be blocked, it's standard practice.
If they still refuse on a significant job, consider whether you want to proceed without one. For small jobs where material costs are minimal, it may not matter. For larger jobs, starting without any financial commitment from the client is a risk that's entirely yours to carry.
Cancellation Policy
Your deposit terms should address what happens if the client cancels. A common approach:
Cancellation more than 7 days before start date: full deposit refunded
Cancellation within 7 days: 50% of deposit refunded
Cancellation within 48 hours or no-show: deposit forfeited
Include your cancellation policy in your quote and on your deposit invoice. Clients can't dispute a policy they were shown before they agreed to it.
Clervo lets you create deposit invoices and final invoices in the same place, with the deposit automatically tracked and deducted from the balance — so you're never manually calculating what's still owed.