You quote a furnace install. The client says yes on the phone. You order a $4,000 unit, book two techs for a full day, and turn down another job to fit it in.
The morning before, the client texts: "Sorry, we're going to hold off for now."
The unit is sitting in your shop. The day is empty. And you are out the cost of the restocking fee, if the supplier even takes it back.
A deposit would not have guaranteed the job. But it would have told you, three weeks earlier, whether the client was serious.
The short version
- Take a deposit on any job where you buy materials or block out a day or more.
- Size it to at least cover the materials. For larger jobs, split the rest into a payment schedule.
- Collect it when the client accepts the quote, not later, and make it easy to pay online.
- Put the deposit terms in writing on the quote, including what happens if they cancel.
Why a deposit matters
It pays for the materials. On an install, you often pay your supplier before the client pays you. Without a deposit, you are financing your client's project out of your own pocket, or your line of credit.
It turns "yes" into a decision. A verbal yes costs the client nothing. A deposit means they have chosen you and stopped shopping around. Clients who will not pay a reasonable deposit are often the ones who were never going to go ahead.
It protects your schedule. A booked install blocks a crew for a day or a week. A cancellation the day before is lost work you cannot replace. A deposit makes last-minute cancellations rarer, and less painful when they happen.
It keeps cash moving. Late payments are one of the biggest problems small businesses report. In Intuit QuickBooks' 2025 survey of 2,487 US small businesses, 56% were owed money on unpaid invoices, US$17,500 on average, and those with more overdue invoices were 1.4 times as likely to have cash flow problems. Money you collect up front is money you never have to chase.
How much to ask for
There is no single right percentage, but there are good rules:
At minimum, cover the materials. If the parts and materials are 40% of the job, the deposit should be at least 40%. You should never be out of pocket on parts for a client who has not paid anything.
For small jobs, a flat amount works. On a $600 repair, a $100 or $150 booking deposit is simpler than a percentage, and still filters out no-shows.
For big jobs, use a payment schedule. A $25,000 landscape install or a full repipe is easier for the client, and safer for you, as stages:
| Stage | Example share |
|---|---|
| On accepting the quote | 30% |
| When materials arrive or work starts | 30% |
| At a mid-point (rough-in, base laid) | 30% |
| On completion | 10% |
Each payment lines up with work done, so neither side is far ahead of the other.
Check your province's rules. Consumer protection laws in each province set requirements for written contracts, cancellation rights and deposits on some kinds of home work. Make sure your quote and terms follow the rules where you work.
When to ask for it
At the moment they say yes. The best time to collect a deposit is the same moment the client accepts the quote. They are excited, they have decided, and paying is one more tap. Ask a week later and you are chasing a payment instead of confirming a booking.
That means the quote itself should carry the deposit, and the client should be able to accept, sign and pay without picking up the phone.
How to ask without losing the job
Most clients expect a deposit on real work. What puts them off is a deposit that feels like an afterthought. A few things help:
- Explain it in one line on the quote. "A 30% deposit secures your installation date and covers the equipment we order for you."
- Make paying easy. A card payment link or an e-Transfer, not "drop off a cheque at the office".
- Say what happens if they cancel. Whether the deposit is refundable, and up to when. Clear terms build trust; vague ones start arguments.
- Send a receipt straight away, and show the deposit on the final invoice so they can see it was counted.
What to write on the quote
- The deposit amount or percentage, and what it covers
- When each payment is due, if there is a schedule
- How they can pay
- The cancellation terms, and whether the deposit is refundable
- That the installation date is confirmed once the deposit is received
How crewduo handles deposits
- The deposit lives on the quote. Set the amount and the client sees it when they open the quote.
- Accept, sign and pay in one go. The client chooses options, signs online and pays the deposit with a card in the same step. You can also take it in person with tap to pay on the Crew plan.
- Payment schedules for bigger jobs. Take a deposit on acceptance and split the rest into instalments.
- Interac too. Your e-Transfer details on every invoice, and transfers matched to the right invoice for you.
- Nothing to chase. Overdue instalments are reminded automatically, on your rules, and the client can pay from their own portal.
See how quotes and payments work, or compare plans on the pricing page. Deposits and payment schedules are on every paid plan.
Quick answers
Will asking for a deposit scare clients away? The ones who walk away over a reasonable deposit are usually the ones who would have cancelled later. Serious clients expect it on real work.
Should I take a deposit from repeat clients? For installs where you buy materials, yes. It is about cash flow, not trust. For routine service visits, you can skip it.
Should the deposit be refundable? Decide it, write it down and stick to it. A common approach: refundable until materials are ordered, then the cost of materials is kept.
Sources
- Intuit QuickBooks, 2025 Small Business Late Payments Report (survey of 2,487 US small businesses, January 2025).