How to send a deposit invoice

Requesting a deposit before starting work is one of the smartest things a freelancer or service business can do. It commits the client, covers your initial costs, and protects you if the project falls through.

How much to charge as a deposit

The standard range is 25% to 50% of the total project value. For new clients, higher-risk projects, or work that requires significant upfront outlay, 50% is reasonable. For repeat clients or smaller jobs, 25% or a fixed fee may be more appropriate.

How to structure deposit invoicing

1. Send a deposit invoice immediately after the client accepts your quote
2. Label it clearly as a deposit — e.g. "Deposit Invoice — 50% of project total"
3. State the remaining balance and when it will be due
4. Do not start work until the deposit is received
5. When the project is complete, send a final invoice for the remaining balance
6. Reference the original deposit invoice on the final invoice so the client can reconcile them

What to put on the deposit invoice

• Your business details and the client's details
• A description of the project the deposit relates to
• The deposit amount and what percentage of the total it represents
• The due date (usually immediate — "due on receipt")
• A note about the remaining balance and when it is due

What if the client cancels?

Make sure your terms and conditions state whether deposits are refundable. Many service businesses state that deposits are non-refundable if the client cancels after a certain point. This should be agreed in writing before work starts.