How to Handle Down Payments and Upfront Deposits

1. The Safety of Upfront Deposits

For new clients or large projects, demanding a down payment is essential. This guarantees that you can allocate dedicated schedule blocks without risk.

2. Structuring Deposit Invoices

Label the invoice clearly as "Deposit Invoice: 50% Upfront." Once paid, issue a second invoice at project completion showing the deposit deducted.

3. Standard Deposit Ratios

Standard ratios are: (a) 50% deposit / 50% completion. (b) 33% deposit / 33% mid-point / 34% completion for long contracts.