Working Capital
Deposits and Progress Billing: Stop Funding Your Customers
Short answer
Any job over $1,000 or lasting more than a day should require a deposit. Standard: 30–50% deposit for jobs under $10k, 30% deposit + milestone billing for larger. Material-heavy jobs should bill materials upfront at cost-plus.
Floating a customer's materials and labor for 30–60 days is one of the worst silent costs in service work. Deposits and progress billing fix it in one move — and most customers are fine with it once it is standard.
When to require a deposit
- Any job over $1,000
- Any job requiring you to buy materials upfront
- Any job lasting more than one day on-site
- First job with a new customer
Standard deposit structure
| Job size | Structure |
|---|---|
| Under $2,000 | 50% deposit, balance on completion |
| $2,000–$10,000 | 30–40% deposit, balance on completion |
| $10,000–$50,000 | 30% deposit, 30% at midpoint, 40% on completion |
| Over $50,000 | 20% deposit, monthly progress billing |
How to phrase it
'Our standard terms are a 30% deposit to schedule, with the balance due on completion. I can text you a secure link to pay by card or bank — takes 30 seconds.'
Make it standard, not a request. 'Standard' beats 'is that okay?' every time.
Frequently asked questions
What if a customer refuses to pay a deposit?
Walk away. Customers who refuse deposits are signaling cash-flow problems or distrust — either way, not worth the risk.
Cash flow you can see.
Glo Invoice surfaces AR aging, upcoming cash, and overdue invoices on one dashboard — free for 14 days.
Sources & further reading
Primary sources we consulted when writing and reviewing this guide.