What deposit means
A deposit is money the customer pays when they accept an estimate, before work starts, to hold the date and cover materials.
Also called down payment, upfront payment.
Where it shows up in your business
Deposits filter out tire kickers and fund material orders. Some states cap deposits on home improvement contracts, so check your state's rule before you set a percentage.
Work it out
- Free template: Estimate template
- Money guide: Payment terms and net 30
- Money: Money guides for contractors