How to ask for a deposit
A deposit covers your materials, holds a spot on your schedule, and tells you the customer is serious. Asking for one feels awkward only when it comes as a surprise. Put it in writing up front and it becomes a normal part of the job.
This is general guidance, not legal or tax advice. Some states limit how much a contractor can collect before work starts on home improvement jobs, or require specific contract wording about deposits and cancellation. Check your state's contractor licensing board before you set your deposit policy.
1. Decide your rule before you need it
Pick one simple policy and use it every time, so you're not negotiating from scratch on each job. Common approaches are a flat amount for small jobs, a share of the total for bigger ones, or the cost of materials you have to buy before you start. Whatever you choose, make sure it fits your state's rules.
2. Put it on the estimate, not in a phone call
Write the deposit right under the total so the customer sees it before they say yes. Show three numbers: the job total, the deposit due to book the job, and the balance due when the work is done. When the deposit is on the page they approved, nobody has to remember what was said on the phone.
3. Say what the deposit is for
One plain sentence helps: "The deposit covers materials and reserves your start date." People pay more readily when they know where the money goes, and it makes the request sound like process instead of distrust.
4. Spell out what happens if plans change
Say in writing whether the deposit is refundable, and when. For example: refundable until materials are ordered, or applied to a rescheduled date. Keep it short and fair. Your state may also give homeowners a right to cancel certain contracts within a few days, so check that before you write "non-refundable."
5. Make it easy to pay right now
The best moment to collect a deposit is right after the customer says yes. Put your business's own payment link (from Stripe, Square, or PayPal) or your business profile handle on the estimate so they can pay from their phone before you leave. If you take checks, say who to make them out to.
6. Send a receipt
When the deposit comes in, send a short receipt with the amount, the date, and the job it's for. It's your record and theirs, and it heads off any question at the end of the job.
7. Show it on the final invoice
On the invoice, list the total, then "Less deposit paid" with the date, then the balance due. The balance should be the biggest, clearest number on the page. Our guide to writing an invoice that gets paid on time covers the rest.
Wording you can copy
Example only: change the names, amounts, and terms to match your business and your state's rules.
On the estimate: "Deposit to book: $250.00, due at approval. Covers materials and reserves your start date. Refundable in full until materials are ordered. Balance of $500.00 due on completion. Pay the deposit here: [your payment link]."
In a text after they say yes: "Thanks, Pat! To lock in Tuesday the 14th, the $250 deposit is the next step. It covers the vanity and parts. You can pay here: [your payment link]. I'll send a receipt as soon as it comes through."
If they push back: "I ask every customer for a deposit on jobs where I buy materials up front. It goes toward your total, so you only pay the balance when the job's done."
Write the estimate now
Our free printable estimate template has room for the total, the deposit, and your payment terms. The free invoice template has a "less deposit paid" line and a balance due. Fill either one in on screen, then print it or save it as a PDF. Nothing is uploaded or stored. For the full walkthrough, see how to write a contractor estimate.
Want this on your phone?
Pencilslip is an estimates and invoices app for solo tradespeople that we're building now. It's planned to include photos, your own payment links on estimates and invoices, and estimates that turn into invoices without retyping. Join the list to hear when it's ready.