When to ask for a deposit, and how much

The job is agreed. Now comes the awkward part: asking for money before you have done any of it.

A deposit is a scheduling tool. It proves that both sides are serious and keeps you from financing the client's job yourself. Below is when to ask, how much, a calculator, and the exact wording for the quote and deposit invoice.

When a deposit is standard

You do not need one policy for every job. Ask for a deposit when one of these is true:

• The client is new. You have no payment history together yet. A deposit confirms that the booking is real before you reserve time.
• You have to buy materials. The deposit should at least cover the money you must spend before the work starts.
• The work blocks other bookings. A photographer holding a Saturday or a cleaner reserving a move-out slot may not be able to refill it after a cancellation.
• The work is custom or cannot be resold. Special-order parts, printed items, and work made for one client carry a real cost even if the client backs out.
• The job crosses your threshold. Pick a dollar amount that would hurt to carry until completion. Put that threshold in your deposit policy and use it every time.

For a small same-day job with no materials, payment on completion may be simpler. For a longer project, a deposit plus milestone invoices can keep the balance from piling up at the end. Set all of those invoice payment terms before work begins.

How much to ask for

Common deposit practice is 10% to 25% for most jobs. Small jobs or custom work may use up to about 50%. Larger projects often split payment into milestones or thirds instead of asking for one large amount up front.

Source: Joist, contractor deposit guide

For trades, start with the costs you must carry before day one. If materials cost $900, a $400 deposit still leaves you financing $500 of the client's job. Use the material cost as your floor, then check whether the resulting deposit follows your state's rules.

Some states cap deposits for home-improvement work. For example, California caps the down payment on a home-improvement contract at $1,000 or 10% of the contract price, whichever is less. Rules vary by state, so check yours before setting a contractor deposit.

Source: California Contractors State License Board, home-improvement contracts

Use the calculator as a starting point, not as a legal recommendation. Match the percentage to your upfront cost, the time you are reserving, and the cap that applies where you work.

The default 30% deposit on a $3,000 job is $900, leaving $2,100 for completion or later milestones. If the project runs for weeks, split that remaining balance at named stages instead of leaving all of it for the final day.

The exact wording

Present the deposit as part of the schedule, not as a test of the client's honesty. State the percentage, dollar amount, what it secures, and when the balance is due.

Work is scheduled on receipt of a [X]% deposit ([amount]); the balance is due [terms].

Add your cancellation and refund terms beside this line. Do not label a deposit “nonrefundable” unless your agreement and local rules support it. If you are unsure, have a local professional review the policy before you use it.

Hi [client name],

Your [job or appointment] is ready to schedule for [start date]. The agreed [X]% deposit is [amount].

Please pay the deposit by [date] using this link: [payment link]. Once it is received, I will confirm [start date or reserved dates]. The remaining [balance] is due [terms].

Thank you,

[your name]

Send the deposit on its own invoice so both sides can see what was requested, what was paid, and what remains. The send an invoice use case shows how Ody drafts one from the job details you text.

If the client pushes back

Do not defend the entire history of deposits. Answer the concern in two sentences, then let the client decide.

I understand. We can split the job into milestones instead: [amount] to reserve the dates, [amount] after [milestone], and the balance on completion. Each payment matches a clear stage of the work.

The deposit holds your dates and covers [materials or preparation] before we start. It is applied to the total, so the job price does not change.

I cannot schedule this job without the agreed deposit. If that does not work for you, I understand, but I will release the dates.

A flat refusal is useful information. If a client will not meet the first written payment term, consider how the final invoice is likely to go. The cost of late payment is not only the balance; it is also the time spent checking and asking. See what late invoices cost before you waive a policy to win a job.

Contractors can also use the same rule across estimates instead of negotiating it at every kitchen table. The Ody page for contractors shows how invoicing and follow-up can run from Apple Messages.

Frequently asked questions

How much deposit should a contractor ask for? Common practice is 10% to 25% for most jobs and up to about 50% for some small or custom jobs. Your upfront material cost is a useful floor, but state caps can set a lower ceiling. Rules vary by state, so check yours.

Is a deposit refundable? It depends on the written agreement, what costs you have already incurred, and the rules that apply to the work. State the refund and cancellation terms before taking payment. Do not promise “nonrefundable” by default.

Should the deposit be on its own invoice? Yes. That is what a deposit invoice is: a separate request showing the job total, the deposit due now, and the balance that remains.

What if I don't front materials? You may still use a booking deposit when the job reserves time that is hard to refill. For short work with little cancellation risk, payment on completion may be enough.

Can Ody send a deposit invoice? Yes. Text Ody the client, job total, deposit percentage, and terms. Ody drafts the invoice for your review and sends it only when you approve.

Make the deposit part of the job

The calculator and wording above work on their own. The part that breaks is remembering to invoice the deposit before you order materials or reserve the date. Ody does the remembering.

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