Deposits and Progress Payments: How Much to Ask For (By Job Size)

Why deposits and progress payments matter

On a big job you front real money — materials, labor, sometimes special-order equipment — long before you’re paid. A deposit means you’re not financing the customer’s project out of your own pocket, and progress payments keep you from ever being deeply exposed. They also signal commitment: a customer who won’t put anything down may not be serious (cash flow).

How much to ask for, by job size

• Small repairs / service calls (low dollar): generally no deposit — collect in full on completion. Asking for a deposit here just adds friction (invoice on completion).
• Mid-size jobs with materials: a deposit to cover your material cost is reasonable — enough that you’re not out of pocket on parts.
• Large projects: a deposit up front, then progress payments tied to milestones (e.g., start, mid-point, completion), with a final payment on finish. Structure it so the amount you’re owed never runs far ahead of the work done.
• Special-order / custom equipment: cover the special-order cost up front — you can’t return it if the customer walks.

Some jurisdictions cap deposit amounts (especially in home improvement) — check your local rules and put terms in a written contract. This isn’t legal advice.

The rules that keep it clean

1. Put it in writing. Deposit amount, payment schedule, and what each milestone covers — in the contract or estimate.
2. Tie payments to milestones, not dates, so payment tracks progress.
3. Never let your exposure grow. The goal: at any point, work completed ≥ money collected... from your side of the risk.
4. Make paying easy — card, link, on the spot (processing fees).
5. Set expectations upfront so deposits aren’t a surprise (communication SOP).

Handling deposit hesitation

A hesitant customer usually just needs reassurance that you’re legitimate and won’t take the money and run. That reassurance is exactly what reviews and a track record provide (objection handling).

Reputation makes deposits an easy yes

Customers hand a deposit to businesses they trust — and balk at ones they don’t know. A strong review profile turns “why should I pay before you start?” into “of course, here you go.” Tailwind builds that trust automatically after every job, so your deposit requests meet far less resistance — see how it works.

Protect your cash without scaring customers. See how Tailwind works.