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Payment Terms
Deposit
Definition
An upfront payment made before work begins or goods are delivered.
Overview
Deposits secure commitment from clients and provide working capital. They're common for large projects, custom work, or new client relationships.
Example
A photographer requires a 50% deposit ($1,500) before a wedding shoot, with the balance due after delivery.
Best Practices
Request deposits for large projects or new clients. Specify deposit amount and when the balance is due.
Common Mistakes to Avoid
Not requiring deposits for large projects
Unclear refund policies
Starting work before deposit clears
Frequently Asked Questions
How much should I charge as a deposit?
25-50% is common. Higher for custom work or new clients.