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Getting Paid 5 min readMar 25, 2025

How to Ask for a Deposit Before Starting Work

Scripts, templates, and psychology behind collecting upfront deposits — so you're never left chasing payment again.

M
Matt Field
Head of Content

Asking for a deposit feels awkward the first time. But it's one of the most effective things you can do for your business's cash flow — and it filters out the clients least likely to pay on time.

Why Deposits Matter

  • Covers your materials and labour costs upfront
  • Filters out unserious clients
  • Gives you leverage if things go wrong
  • Improves cash flow — especially for large jobs
  • Creates a committed client who values the work

How Much to Ask For

The standard is 25–50% upfront, with the balance due on completion. For materials-heavy jobs (construction, landscaping, HVAC installs), 50% upfront is normal and expected. For service-heavy work (consulting, design), 25–30% is more common.

A 50% deposit on a $5,000 job gives you $2,500 to buy materials before you've set foot on site. That's not aggressive — that's just good business.

How to Ask Without Feeling Awkward

Frame it as standard practice, not a reflection on the client. The worst thing you can do is ask apologetically — it signals that you're not sure you deserve it.

  • "We require a 50% deposit on all new projects to secure your booking."
  • "To get started, I'll send across a deposit invoice for 50% of the total."
  • "Our process is a 30% deposit upfront, balance on completion — does that work for you?"
  • "We take a deposit to cover materials before we start — it's standard for jobs of this size."

When to Ask

Ask for the deposit at the point of agreement — after they've said yes to your quote but before you schedule the work or order materials. Don't wait until you're about to start. Send the deposit invoice the same day they approve the quote.

Handling Pushback

Some clients will resist. Here's how to respond:

If a client pushes hard against any deposit and can't give a good reason, that's a signal worth taking seriously. The clients who are most resistant to deposits are often the ones who end up not paying.
  • "We don't normally pay deposits" → "I understand — it's our standard process for all new clients. It lets us secure your slot and order materials in advance."
  • "Can we just pay at the end?" → "For projects over $X we do require a deposit. It ensures we can commit the right resources to your job."
  • "What if you don't finish the job?" → "That's a fair question. Our deposit terms include a refund clause if we fail to deliver — I can send that over."

Frequently Asked Questions

Is a deposit invoice different from a regular invoice?
It's the same format — just for a portion of the total. Label it clearly as 'Deposit Invoice' and note that the balance will be invoiced on completion.
Can I keep a deposit if the client cancels?
That depends on your cancellation policy, which should be in your contract. A standard clause is: deposits are non-refundable if the client cancels within X days of the start date.
How do I record deposits in my accounts?
Record it as a liability (deferred income) until the work is complete, then recognise it as revenue. Your accountant can advise on the specifics.
Should I ask for a deposit from existing clients?
Yes, for large jobs. Long-term clients may get Net 30 terms on smaller jobs, but for anything significant, a deposit protects you both.
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