Glossary

What is Deposit?

A part-payment taken before work starts, to commit the client and reduce your risk.

A deposit — commonly 25% to 50% for project work — is paid before you begin. It filters out clients who are not serious, covers early costs, and reduces how much you can lose if the client never pays.

Make clear in your terms whether the deposit is refundable if the client cancels.

Example

A £3,000 website project: 50% (£1,500) on booking, 50% on launch.

Free tools

Late Payment Clause GeneratorPayment terms and a late payment clause for contracts and T&Cs.Companies House Client CheckerIs your client active, dissolved or in liquidation? Check before you work.

Related terms

Payment termsThe agreed rules for when and how an invoice must be paid.Retention of titleA contract term saying goods (or rights) remain yours until you are paid in full.

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