How much deposit should you take on a job?

A deposit isn't cheeky, it's normal

New sole traders often feel they can't ask, as though a deposit signals distrust. It doesn't. Every established trade takes them, and customers who've had work done before expect them. A deposit shares the risk fairly: you shouldn't be funding a stranger's materials out of your own pocket and hoping to be paid back at the end.

It also filters out the time-wasters. Someone who won't commit a deposit to a job they've accepted was rarely a firm booking, and it's far better to learn that before you've turned down other work to hold the date.

How much: cover the materials, not the profit

The cleanest principle is that the deposit should cover what you have to spend before you start, mostly materials, plus anything non-refundable like hire or special-order items. That way, if the job collapses after you've bought the parts, you're not out of pocket for someone else's change of mind.

Sizing it to your outlay rather than to a round percentage of the total keeps it fair and easy to justify. On a job that's nearly all labour and little material, the deposit is naturally small; on one with expensive parts ordered up front, it's larger, and the customer can see exactly why. A markup or margin calculator (there's a free one at /tools/markup-margin-calculator) helps you know your true materials cost before you set the figure.

• Small, labour-heavy jobs: often no deposit needed, or a token one to confirm the booking.
• Jobs with real materials: a deposit that covers the parts you buy before you start.
• Special-order or hired items: cover them in full, since you can't return them if the job falls through.

When to always take one

Some jobs should never start without a deposit: anything where you order materials in advance, anything that books out several days you're turning other work away for, and any first job with a customer you don't know. The deposit is what turns 'I'm interested' into a real commitment on both sides.

For repeat customers with a track record of paying, you can relax it, and that flexibility is itself a small reward for being reliable. But make relaxing it a decision you choose, not a habit you drift into because asking felt uncomfortable that day.

Deposit up front, stages on long jobs

On a job that runs over days or weeks, one deposit at the start and one payment at the end leaves you carrying too much for too long. Break it into stages: a deposit to book and buy materials, one or more payments as agreed milestones are reached, and the balance on completion.

Staging keeps your cash flow healthy and keeps the customer's commitment fresh the whole way through. It also means that if something goes wrong halfway, neither side is dangerously exposed. Raise each stage as its own invoice against the job so what's paid and what's still owed stays legible from start to finish.

Put it in writing so it's not a favour

A deposit agreed by text and paid by transfer is fine until there's a disagreement, at which point 'what the deposit covered' becomes a memory contest. State it on the quote: the deposit amount, that it secures the booking and materials, and when the balance falls due. Then it's a term the customer accepted, not a favour they can dispute.

Making the terms visible up front also makes asking easier, because the number is just part of the quote rather than an awkward conversation you have to start. When the customer accepts the quote, they've accepted the deposit with it.

Common questions

Is it normal to ask for a deposit as a tradesperson?

Yes. Every established trade takes deposits, and customers who've had work done before expect them. A deposit fairly shares the risk so you're not funding a stranger's materials out of your own pocket, and it confirms the booking is real rather than a maybe.

How much deposit should I ask for?

Size it to cover what you have to spend before you start, mainly materials, plus anything non-refundable like hire or special orders. That protects your outlay without dipping into profit, keeps it fair, and makes the figure easy to justify because it tracks a real cost the customer can see.

When should I always take a deposit?

Whenever you order materials in advance, whenever the job books out several days you'd otherwise fill with other work, and on any first job with a customer you don't know. For proven repeat customers you can choose to relax it, but make that a deliberate decision rather than a habit.

Should long jobs be paid in stages?

Yes. On work that runs for days or weeks, take a deposit to start, one or more payments at agreed milestones, and the balance on completion. Staging protects your cash flow, keeps commitment fresh, and limits how exposed either side is if something goes wrong midway.

How do I make sure the deposit terms are clear?

Put them on the quote: the amount, what it secures, and when the balance is due. When the customer accepts the quote they accept the deposit with it, so it's an agreed term rather than a favour that can later be disputed. A written quote also gives you one dated record of what was agreed.

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