Why you need to get a deposit before starting that project - Fiona Robertson (2024)

Let me ask you something: do you get a deposit before you start working with a client?

Getting a deposit, or booking fee/downpayment etc, is pretty standard practice but some businesses still don’t ask for them. This is surprising, as starting projects with a deposit has benefits for both your business and your clients.

It’s been my policy for years to never start work without getting a deposit. Because back in the day, when I was young, naïve and way less cynical 😉 I was screwed over. More than once. People would take my designs and not pay for them. Or they’d accept a quote, I’d reserve space for them in my schedule then at the last minute (and only when prompted) they’d tell me they’d changed their mind, leaving me with a an empty space in my calendar it was too late to fill. Or they’d gratefully receive their printed posters then disappear without ever paying me for said print work.

Sadly, I’m not alone. Most business owners could probably tell similar stories. Which is why it’s vital that you get a deposit before starting that project.

If you still need convincing, here are a few very good reasons to start getting a deposit from your clients:

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Getting money upfront is good for cashflow

Cashflow issues can ruin a small business so it’s vital to keep money coming regularly into your business.

For You:

Getting a deposit at the start of your projects greatly helps with your cashflow. Because if you wait until the end of a project to invoice all the work and the project end is delayed, then so is your payment. If you get part payment up front then you can have more control over your cashflow and any delays won’t have so much impact on your finances.

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For Clients:

Paying for premium services can be hard on the wallet, so project deposits can also benefit clients. Spreading the payments over two or three instalments can be easier on your cashflow too as you’re not paying out so much all at once.

You might also like: How to chase overdue invoices

A deposit shows you are both committed to the project

Trust between you and your client is extremely important to the successful completion of projects. Using deposits is a great way of cementing that trust and demonstrating your commitment to the work.

For You:

Getting a deposit from your client, before you start the work, shows that the client cares about the project and wants it to be a success. It also demonstrates that they are willing to pay you for the work (if a client refuses to pay a deposit you should take that as a warning sign that they may not intend to pay you at all!)

Additionally, by giving a deposit, your client has already invested in the work so will be more inclined to stick to deadlines for giving feedback or providing information. That means the work can be finished on time and your client can start seeing a return on their investment. It’s win-win.

For Clients:

Trust works both ways and by taking a deposit from you, the service provider is also committing to the project. You can know that your deposit secures your project a place in their schedule and that they’ll complete the work.

Additionally, getting a deposit from you is usually a sign that they take their business seriously. Which means you should expect them to act in a properly professional manner with you.

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As you can see, when you get a deposit before starting a project, it benefits both your business and your clients. By using them, both of you are committing to building a professional relationship, built on trust. That can really help this project go smoothly and pave the way for doing many more successful projects together!