Getting Paid · · Hunter Hammonds
How to Ask for a Deposit Before Starting Work (Scripts Included)
How to ask for a deposit before starting work, with typical deposit ranges by industry, state cap caveats, and three word-for-word scripts you can copy.
Ask for the deposit in writing, as a stated policy, before you order materials or block your calendar. Send the estimate, then a one-line deposit request: the amount, what it covers, how to pay it, and the sentence "work is scheduled once the deposit clears." Deposits commonly run 10 to 50 percent depending on your trade, though some states cap how much you can collect on home improvement contracts. You do not need to justify it or apologize for it. A deposit is standard practice, and stating it plainly is what professionals do.
The reason to bother is simple. Over half of small businesses are owed money on unpaid invoices, averaging 17,500 dollars each, according to QuickBooks' 2025 Small Business Late Payments Report. A deposit is the cheapest insurance against being one of them. It confirms the client is real, it covers the money you spend before you ever get paid, and it changes who is carrying the risk on the job. This guide gives you the ranges, the state cap you need to know about, and three scripts you can copy word for word. Remi, an AI teammate for small business owners, can track which deposits are outstanding and draft the follow-ups, but the manual method below works on its own.
Why should you take a deposit before starting work?
Because right now, you are financing your clients. When you buy materials, block a week, and start work before any money changes hands, you are lending the client your time and your cash and hoping they pay you back. A deposit ends that.
The numbers say this is not paranoia. More than two out of three contractors are paid late, according to Built's 2025 reporting on construction payment delays. Late payment is the norm in this work, not the exception. A deposit does three things at once:
- It filters out clients who were never going to pay. Someone who balks at a deposit was going to be a problem at the final invoice too. Better to learn that before you buy lumber.
- It covers your upfront costs. Materials, permits, and the crew you scheduled are real money you spend before the job earns a dime.
- It commits the client. People cancel free reservations. They protect the ones they paid for.
How much of a deposit should you ask for?
It depends on your trade and how much you spend before the work is done. As a rule, the more you lay out for materials up front, the larger the deposit. Pure-labor and retainer work sits at the low end. Material-heavy remodels sit at the high end.
These are common ranges, not rules. Your costs set your floor: never take a deposit smaller than the material and mobilization money you have to spend before the client pays again.
| Type of work | Typical deposit range | Why |
|---|---|---|
| Construction and remodeling | 10 to 50 percent | Heavy upfront material and permit costs; often structured as milestones on larger jobs |
| Home services (HVAC, plumbing, electrical, landscaping) | 25 to 50 percent, or full material cost | Special-order parts and equipment bought before the visit |
| Agencies and creative (design, marketing, web) | 50 percent up front, or a monthly retainer paid in advance | Labor-heavy; the deposit reserves your capacity for the month |
| Small or same-day jobs | Often none, or payment on completion | Low material cost and short duration make a deposit unnecessary |
For larger construction jobs, most owners do not take one big deposit and disappear. They break the job into milestones and bill a piece at each one. More on that structure in the scripts below.
Are there legal limits on how much deposit you can charge?
Yes, in some states, and this is the one part of deposits where you cannot just pick a number. Several states cap the down payment on home improvement contracts, and the cap can be far lower than the deposit you would otherwise ask for.
California is the strictest common example. On a home improvement contract, the down payment cannot exceed 10 percent of the contract price or 1,000 dollars, whichever is less, per the California Contractors State License Board. Read that carefully: it is the lesser of the two. On a 60,000 dollar kitchen remodel, your legal deposit is 1,000 dollars, not 6,000. The way California contractors handle this is with a progress-payment schedule, collecting more as the work reaches each milestone, so the 1,000 dollar cap is just the opening deposit and not the whole picture.
Rules vary by state, and many states have their own caps, contract requirements, and licensing rules for deposits. This is general information, not legal advice. Before you set a deposit policy, check your own state's contractor licensing board or consumer protection office so your number is legal where you work.
How do you actually ask for a deposit?
Put it in writing, tie it to the estimate, and make paying it the thing that starts the clock. Never ask for a deposit as a favor or an afterthought. Follow these steps.
- Put the deposit in the estimate, not in a separate conversation. When the client sees the price, they see the deposit next to it. It reads as terms, not a surprise.
- State the amount, what it covers, and how to pay it. "A 30 percent deposit of 2,400 dollars covers your materials. You can pay by card, transfer, or check." Vague requests get ignored. Specific ones get paid.
- Make the deposit the trigger for scheduling. The exact line that does the work: "Work is scheduled once the deposit clears." Now the client controls the start date by paying, and you are not chasing anyone.
- Send it in writing and give one clear way to pay. A text or email the client can act on in ten seconds. A payment link, an invoice, or your account details, right there in the message.
- Do not order materials or block the calendar until it clears. This is the discipline that makes the whole thing work. The deposit is not real until the money is in your account. Wait for it.
What exactly do you say? Three scripts you can copy
Say it plainly and treat it as normal, because it is. Here are three scripts for the three situations you will actually face. Change the numbers and the trade, keep the structure.
Script 1: New client, first job
Hi [Name], thanks for choosing us for the [project]. I've attached the estimate. To get you on the schedule, I ask for a [30]% deposit of [$X], which covers your materials and reserves your spot. You can pay by [card / transfer / check] using the link below. As soon as the deposit clears I'll confirm your start date of [date]. Let me know if you have any questions.
Deposit request, new client
Script 2: Existing client you have worked with before
Hi [Name], good to be working together again. The estimate for the [project] is attached. Same as last time, I'll get the materials ordered once the [30]% deposit of [$X] comes through. Here's the payment link. Once it clears I'll lock in [date] for you.
Deposit request, returning client
Script 3: Big project, milestone structure
For a large job, do not ask for one huge number. Break the price into stages and collect at each one. This is easier for the client to say yes to, it keeps you paid as you go, and it keeps you inside state deposit caps.
Hi [Name], here's the estimate for the [project], total [$X]. For a job this size I bill in stages so you're never paying far ahead of the work:
- Deposit to start and order materials: [$X, or the legal cap in your state]
- At [rough-in / halfway / first milestone]: [$X]
- At [second milestone]: [$X]
- Final balance on completion and your walkthrough: [$X]
I'll get you scheduled as soon as the first payment clears. Happy to walk through the schedule on a call if that's easier.
Progress-payment request, large project
The milestone version is also how you stay legal in capped states. Your opening deposit stays under the cap, and the rest of your money is tied to completed work rather than collected up front.
What if the client pushes back on the deposit?
Restate the policy calmly and do not move the start date. Pushback on a deposit is information. Most of it is easy to answer, and the small share that is not is telling you something you want to know before you start.
Here is how to handle the common ones:
- "Can we skip the deposit and I'll pay when it's done?" Answer: "I order your materials up front, so the deposit covers that cost. It's how I schedule every job." Then stop talking. You do not need to negotiate your own policy.
- "That seems like a lot." Answer: break it down. "The deposit is your materials. The rest is due as the work gets done." Once they see it is not profit sitting in your pocket, the number lands differently.
- "I've never been asked for a deposit." Answer: "It's standard for [trade] work because of the material costs. It also locks in your date." Calm, factual, not defensive.
- Flat refusal to pay any deposit. This is the signal. A client who will not put down a dollar before you spend hundreds on their job is showing you how the final invoice is going to go. It is completely reasonable to say the start date stays open until the deposit clears, and to walk if it never does.
The one rule underneath all of these: hold the line on the start date. The moment you start work to be nice while the deposit is still unpaid, you have taught the client that your terms are optional.
FAQ
Is asking for a deposit unprofessional?
No. A deposit is standard practice across construction, home services, and creative work. Stating it plainly as your policy reads as professional, not pushy. The businesses that look unprofessional are the ones that do the work first and chase the money later.
How much deposit should I ask for?
It depends on your trade and your costs. Deposits commonly run 10 to 50 percent, with material-heavy jobs like remodels landing higher and pure-labor or retainer work landing lower. At a minimum, cover the material and mobilization money you spend before the client pays again.
Is it legal to require a deposit before starting work?
Generally yes, but some states cap how much you can collect on home improvement contracts. California limits the down payment to 10 percent or 1,000 dollars, whichever is less. Rules vary by state, so check your state licensing board. This is general information, not legal advice.
What do I do if a client refuses to pay a deposit?
Restate the policy calmly and hold the start date. A deposit protects your material costs and confirms the client is serious. If they will not pay any deposit at all, that is often a preview of how the final invoice will go.
When should I collect the deposit?
Before you order materials or block the calendar. The deposit should clear before you commit money or a start date to the job, not after the first day of work.
Letting Remi handle the follow-up
You can run all of this yourself with the scripts above. Send the estimate, state the deposit, hold the start date until it clears. The manual method is complete, and it works.
If you would rather not be the one tracking it at 9pm, this is the exact job Remi was built for. Remi watches your connected inbox and books, so Remi sees when a deposit request went out and got no reply, and flags it before the job stalls in limbo. Remi drafts the follow-up in your voice for your approval. Nothing goes out without your say-so, and every action comes with a receipt.
Remi is an AI teammate. We say so because Remi will never pretend otherwise, and neither will we. Remi prepares and proposes; you approve. The point is not to hand over the keys. It is to stop being the person who has to remember which deposit is still unpaid while three new jobs come in.