Should Freelancers Ask for a Deposit? Yes — Here's How Much and When

You've scoped the project, agreed on a price, shaken hands (virtually), and started working. Three weeks later you deliver everything. Then you send the invoice. Then you wait. And wait. Two months later you're still chasing payment for work that's long finished, and the client has gone quiet.

This scenario is so common among freelancers it's practically a rite of passage. But it's entirely preventable. The fix? Ask for a deposit before you start working.

A solid freelancer deposit policy doesn't just protect your cash flow — it filters out bad clients, demonstrates professionalism, and sets the tone for the entire working relationship. Yet most freelancers don't ask for deposits because they're afraid of losing the gig. Let's fix that.

Why Deposits Matter (and Why Most Freelancers Don't Ask)

An upfront payment does three things simultaneously. First, it guarantees you'll be compensated for at least part of your work, even if the project implodes. Second, it creates psychological commitment — a client who's paid money upfront is invested in the project's success. Third, it immediately reveals whether a client is serious or just tyre-kicking.

So why do so many freelancers skip this step? Usually, it's one of three reasons:

• Fear of rejection: "If I ask for money upfront, they'll hire someone else." (They almost never do.)
• Imposter syndrome: "I'm not established enough to demand deposits." (You are. Even brand-new freelancers should require them.)
• Ignorance: "I didn't know deposits were a thing in my industry." (They're standard in virtually every creative, technical, and consulting field.)

Here's the reality: any client who objects to paying a reasonable deposit is a client who's likely to cause payment problems later. The deposit request isn't just about protecting your bank account — it's a litmus test for the entire engagement. Better still, credit check new clients before you start to catch problems early. If you want to understand the other warning signs a client won't pay, that's worth reading too.

How Much to Charge as a Deposit

The right freelance deposit percentage depends on the project size, your relationship with the client, and your industry norms. But here are the three most common structures:

25% Deposit

Best for: established clients with a solid payment history, or lower-risk projects under £1,000. A quarter upfront shows good faith from the client without creating friction. You're essentially saying, "I trust you, but let's formalise this."

50% Deposit

Best for: new clients, projects over £2,000, or any engagement where you're committing significant time before delivery. This is the most common deposit amount across creative and tech freelancing, and it's what we'd recommend as your default. Half upfront, half on completion — simple, fair, and easy to explain.

100% Upfront

Best for: small, defined deliverables (under £500), rush jobs, or clients in industries known for payment issues. Full payment upfront might sound aggressive, but for small jobs it often makes sense. The admin cost of chasing a £200 invoice outweighs the friction of asking for payment before you begin.

For larger projects, a three-stage structure often works better than a simple two-way split:

• 40% on signing — before any work begins
• 30% at midpoint — tied to a specific milestone or deliverable
• 30% on completion — after final delivery and approval

This approach keeps cash flowing throughout the project and limits your maximum exposure at any point. Make sure your payment terms are in the contract before you start.

When to Require Deposits

Short answer: always. Long answer: especially in these situations.

New Clients You've Never Worked With

No track record means no trust — yet. A deposit requirement is the professional equivalent of "trust but verify." Any reasonable new client will expect it. The ones who push back hard are waving red flags.

Large Projects (Over £2,000)

The bigger the project, the more time you'll invest before seeing payment. Without a deposit, you're essentially extending thousands of pounds of free credit to someone you might barely know. Would a plumber fit an entire bathroom before asking for a penny? No. Neither should you.

Projects With Long Timelines

If the work will take more than a month, you need money coming in before the finish line. Use milestone payments to break it up. Going 8 or 12 weeks without income on a single project is a cash flow disaster waiting to happen.

Rush Jobs and Priority Work

If a client needs something urgently, they should be willing to pay upfront. Rush work means you're rearranging your schedule and potentially turning down other opportunities. A deposit (or full payment) compensates you for that flexibility.

Clients in Volatile Industries

Startups, events companies, and businesses in financial difficulty are higher risk. Not because they're dishonest — but because their cash flow is unpredictable. A deposit protects you if their situation changes mid-project.

Deposit vs Retainer vs Milestone Payments

These three terms get confused constantly. They serve different purposes, and knowing the distinction helps you pick the right structure for each engagement.

Deposit

A one-off upfront payment against a specific project. It's deducted from the total cost. If the project costs £5,000 and you take a 50% deposit, the client pays £2,500 before work begins and £2,500 on completion. Simple.

Retainer

A recurring payment (usually monthly) that reserves your availability. The client pays, say, £1,500 per month for 20 hours of your time. Whether they use all 20 hours or not, you get paid. Retainers are about ongoing access, not project completion.

Milestone Payments

Staged payments tied to specific deliverables. The project is broken into phases, and the client pays at each stage. This is ideal for large, complex projects where neither party wants to front the full amount. It also gives the client checkpoints to review progress before committing further.

For most project-based freelancers, a deposit + final payment or milestone structure works best. Retainers are brilliant if you can get them, but they suit ongoing relationships rather than one-off engagements.

How to Add a Deposit Clause to Your Contract

Your deposit terms need to be in writing. Not in an email. Not in a verbal agreement. In the contract. Here's a sample clause you can adapt:

Key elements every deposit clause should include:

• The exact amount (percentage and pound figure)
• When it's due (on signing, before work starts)
• What triggers work to begin (receipt of deposit)
• Refund policy (non-refundable after work begins is standard)
• What happens on cancellation (deposit retained, additional work invoiced)
• When the balance is due (on completion, within X days of delivery)

If you don't have a contract template yet, build one. Your invoicing best practices should align with whatever your contract specifies — consistency between the two documents prevents disputes. Our payment terms generator can help you build these clauses quickly.

Scripts for Asking Clients for a Deposit

Knowing you should ask for a deposit is one thing. Actually saying the words is another. Here are three scripts for different scenarios, designed to sound confident without being aggressive.

Notice the pattern: state the policy, explain the logic, move to the next step. You're not asking permission. You're informing them of how you work. Confidence is everything here.

What to Do if a Client Refuses to Pay a Deposit

It happens. Here's how to handle it without burning bridges — or burning yourself.

Step 1: Understand Their Objection

Ask directly: "What's your concern about the deposit?" Common objections include:

• "We don't pay deposits to suppliers." (Corporate procurement policy — sometimes negotiable.)
• "We need to see some work first." (Trust issue — a paid discovery phase can solve this.)
• "Our payment terms are net-60." (Cash flow issue on their end — not your problem to absorb.)
• "No other freelancer has asked for this." (Either untrue, or those freelancers got burned.)

Step 2: Offer a Compromise (If Appropriate)

You don't have to be rigid. Options include:

• Reducing the deposit to 25% instead of 50%
• Offering a small paid discovery phase before the main project
• Accepting a purchase order (PO) as a formal commitment alongside a smaller deposit
• Switching to milestone payments instead of a single upfront sum

Step 3: Know When to Walk Away

If a client refuses any form of upfront payment or financial commitment, that's a major warning sign. They're asking you to take 100% of the risk while they take none. In most cases, the correct answer is to politely decline the project.

A client who won't commit financially before work begins rarely becomes a reliable payer afterwards. The deposit isn't just a payment — it's a signal.

You can use our free invoice generator to create professional deposit invoices in seconds — no faffing about in Word or Google Docs.

Making Deposits Your Default

The biggest shift isn't tactical — it's psychological. Stop treating deposits as something you request and start treating them as something you require. The language matters. "Would you be open to a deposit?" invites negotiation. "My terms include a 50% deposit before work begins" states a fact.

Every freelancer who's been burned by a non-paying client wishes they'd asked for a deposit. Every freelancer who asks for deposits wonders why they didn't start sooner. The maths is simple: upfront payments eliminate your biggest risk as a freelancer — working for free.

Build it into your contract. Build it into your workflow. Build it into your identity as a professional. Clients who respect your work will respect your terms. The rest were never worth your time.