A deposit protects you from fronting material and labor on a handshake. Here is how much to ask for, where the law draws the line, and how to bring it up so the customer says yes.
For most residential jobs, a deposit of 10 to 33 percent of the total is normal and defensible. Small jobs where you are supplying material often sit near a third; larger jobs with long timelines usually break into a smaller deposit plus progress payments as the work hits milestones.
The real rule is simpler than a percentage: your deposit should at least cover the money you have to spend before the customer owes you anything. If you are buying 4,000 dollars of material on Monday, a 500-dollar deposit is not protecting you. Price the deposit to the cash you put at risk, not to a round number that feels polite.
Deposit limits are set by state, and a few are strict. California, for example, caps home-improvement deposits at 1,000 dollars or 10 percent of the contract price, whichever is less. Other states set no hard cap but require the deposit terms to be in a written contract. Before you set a house policy, look up your own state contractor board, because a deposit that is standard in Tennessee can be illegal in California.
Two things keep you safe everywhere: put the deposit amount and what it covers in writing, and never take a deposit for work you are not licensed or ready to start. A signed estimate that states the deposit, the balance, and the schedule is your protection if a job goes sideways.
Most customers expect a deposit. The ones who balk are usually reacting to how it was asked, not the deposit itself. Frame it as the thing that locks in their spot and pays for their material, because that is true: “The deposit covers your materials and holds your start date. The balance is due when the work is done and you are happy with it.”
Put the number on a professional-looking estimate, not in a text that reads like you are short on cash. When the deposit sits on a signed document next to the scope and the total, it looks like standard business, because it is. A clean estimate does more to earn the deposit than any speech.
If a customer refuses any deposit on a material-heavy job, that is information. It can mean tight cash, and it can mean they have stiffed a contractor before. Offer a middle path: a deposit that covers materials only, with labor billed as the work is done. If they still refuse and you would be fronting real money, it is fair to walk. A job that starts with you financing the customer rarely ends well.
For customers who genuinely cannot pay a lump deposit, offering financing lets them proceed while you still get funded up front. SayEstimate supports monthly financing through Affirm, subject to approval, so the customer can spread payments while your deposit lands on schedule.
SayEstimate puts a deposit line right on the estimate. The customer signs on their phone and pays the deposit by card or bank in the same tap, and the money lands in your own account.
SayEstimate builds the estimate, collects the deposit, and chases the invoice for you. 14 days free, no card to start.
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