A deposit exists so that you are not funding your client's project out of your own cash. For any work with a material cost, asking for one is standard practice, not an imposition.
Common deposit structures
| Structure | Suits |
|---|---|
| 50% up front, 50% on completion | Most project work with materials |
| Materials up front, labour on completion | Where the material cost is the bulk of the job |
| 33 / 33 / 33 across milestones | Longer jobs running over several weeks |
| Full payment up front | Small jobs, new clients, custom orders |
| No deposit | Established clients on agreed terms |
Fifty per cent is the most common answer for a reason: it covers materials on most jobs and it splits the risk visibly. A client who will not pay half is telling you something useful before you have bought anything.
Say it on the quotation
The deposit belongs on the quotation, in the terms, next to the total. Introducing it for the first time when the client accepts feels like a change of terms, because it is one.
Wording that works: 50% deposit payable on acceptance. Balance payable on completion. Work is scheduled once the deposit reflects.
That last clause is the one that matters. It sets the trigger for your time, not just your invoice.
Getting the balance
- Invoice the balance the day the work is complete, not at month end
- Reference the deposit on the invoice so the client sees the arithmetic
- State the due date, not just the term
- For staged work, invoice each stage as it completes rather than accumulating
Common questions
Is a deposit refundable?
That depends on what your terms say. Set it out on the quotation, particularly for materials you cannot return.
Should I issue an invoice for the deposit?
Yes. It is a payment against a supply and should be documented like any other.
What if a client refuses a deposit?
For a new client with no payment history, treat it as information. For an established one, it is a negotiation.
Set your deposit terms once and they appear on every quotation you send.
Create a professional quotationDisclaimer: This content is for general information only and does not constitute legal, tax, accounting or financial advice. Always confirm important requirements with SARS, the relevant authority or a qualified professional.
