Definition
What it means
A deposit is an upfront payment the customer makes when they accept your quote. It typically ranges from 20 to 50 percent of the total. The deposit covers your initial material and labour outlay so you are not funding the customer's project, and it commits the customer to the booking so they are less likely to cancel last-minute.
When you'd take one
Take a deposit on any job where you have to outlay material before the job starts, where the dates are unique (weddings, peak-season installs), or where the customer is new and you have no payment history. Common deposit sizes: 20 to 30 percent for general residential work, 30 to 50 percent for made-to-order items (kitchens, blinds, awnings), and 50 percent for wedding work where the date is non-replaceable.
What the deposit clause should say
State the deposit amount or percentage, whether it is refundable, and what the refund policy is. Standard wording: '30 percent non-refundable deposit on acceptance secures the booking. Balance due on completion.' Without 'non-refundable' you are exposed to last-minute cancellations.
How QuoteGenio handles deposits
Add a deposit line to any quote and the system shows the deposit amount and the balance due. When the deposit is paid, mark it on the invoice and the customer sees the running balance clearly.
Related terms
Other glossary entries you might want next
Closely related terms in the trades-finance vocabulary, with the same plain-English treatment.
Progress Payment
A staged invoice issued during a longer project, billed against milestones or a percentage-complete basis rather than waiting for the entire job to finish.
Payment Terms
The agreement on when an invoice must be paid. Standard wording like 'Net 7' means 7 days from invoice date.
Retention
A percentage of each progress payment the customer holds back until the job is complete and defects-liability has expired. Standard on commercial work.
Put it to work
Templates that use this concept
Free quote and invoice templates where this term naturally appears.
Testimonials
Trusted by tradespeople
Real tradespeople using QuoteGenio to quote and invoice from their phone, with the trades-finance vocabulary you've just read about.
“I used to delay sending quotes because it took too long. Now I do it straight after the job and get faster responses.”
Warren Jacobs
Plumber · Geneva
“Emergency call-outs at 2am are the worst time to write a quote. Being able to send something formal from my phone in a minute has saved me more than once.”
David Romano
Locksmith · Toronto
“The WhatsApp sending is a game changer. Most of my clients do not check email, so being able to send quotes instantly helps me get quicker responses.”
Kyle Adams
Electrician · Berlin
Read more
Articles that go deeper on this topic
Long-form posts from the QuoteGenio blog that put this concept in real-world context.
How to Charge Deposits on Quotes (Complete Guide)
Deposits protect your cash flow, reduce the risk of ghosting clients, and signal that you run a real business. Here is exactly when to charge one, how much to ask for, and how to write it into your quote so clients say yes.
Voice to Quote: Dictate a Job, Get Priced Line Items
Hold the mic, describe the job in your own words, release. The AI drafts a priced quote. What Voice to Quote is, when to use it, and when not to.
Sunday Bank Reconciliation in 15 Minutes
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