Deposits and Staged Payments for Trade Jobs
Working a whole job before seeing a penny is how tradespeople end up funding a customer's project out of their own bank account, and occasionally not getting paid at all. Deposits and staged payments aren't about distrust, they're about matching what you're owed to what you've actually spent and delivered as the job progresses.
Why a deposit exists
A deposit does two jobs: it covers material costs you have to lay out before work starts, boiler, kitchen units, whatever the job needs ordered in advance, and it signals that the customer is genuinely committed, not just collecting quotes with no real intention to proceed. Both are legitimate reasons, and neither needs to be dressed up as anything else when you explain it.
How much to ask for
There's no single correct percentage, but a sensible starting point is to size the deposit to roughly match your material outlay before the next payment point. A job with £2,000 of materials to order up front on a £5,000 total might reasonably ask for a 30 to 40 percent deposit. A labour-only job with minimal material cost might need a much smaller deposit, or none, since your real exposure is time rather than cash already spent.
Staging payments on longer jobs
For anything running more than a week or two, break the total into stage payments tied to visible progress: a deposit on acceptance, a payment when materials arrive or a defined phase completes (first fix done, units installed), and the balance on completion. Tying payments to something the customer can see for themselves, rather than arbitrary dates, makes each request feel earned rather than just another bill.
Putting it in writing from the start
State the full payment schedule on the original quote, not as a surprise partway through the job: deposit amount and when it's due, each stage payment and what triggers it, and the final balance and when it's expected. A customer who's seen the whole schedule before agreeing to the job has no grounds to be surprised by a stage payment request later.
Protecting yourself on larger jobs
On bigger jobs, resist the temptation to let one stage slip into the next without being paid, finishing one stage's work and moving straight into the next because the customer's "good for it." If a stage payment is late, it's reasonable to pause before starting the next phase until it's settled. This isn't awkward if it's already written into the original agreement, it's just following the plan both sides agreed to.
Invoice each stage properly
TradeQuoteKit's free invoice generator makes it quick to raise a clean invoice for each stage payment, with your business details remembered for next time.
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What's a reasonable deposit to ask for?
For jobs with significant material cost up front, 25 to 50 percent is common and reasonable, roughly matching what you'll spend on materials before you're paid again. For labour-only jobs with little material outlay, a smaller deposit or none at all is often fine, since your main exposure is time rather than cash spent.
Is it normal to ask for a deposit before ordering materials?
Yes, this is one of the most common and sensible uses of a deposit: covering the cost of materials you need to order before work starts, so you're not funding the customer's job out of your own pocket.
How do I structure stage payments on a longer job?
Tie each stage payment to a visible milestone the customer can see for themselves: deposit on acceptance, a payment when materials arrive or first fix is complete, another at a defined mid-point, and the balance on completion. Visible milestones reduce arguments, since the customer isn't being asked to pay for progress they can't see.
What if a customer refuses to pay a deposit at all?
Treat it as useful information. A reasonable, clearly explained deposit request is standard practice, and a customer who won't agree to any deposit on a job with real material costs is a higher-risk customer to take on. It's reasonable to hold your position or decline the job.