How to Invoice for a Deposit or Upfront Payment

Why Request a Deposit?

• Protects you if client cancels
• Covers material costs upfront
• Improves cash flow
• Shows client commitment
• Standard practice for large projects (£1,000+)

Invoice Format: 50% Deposit + 50% Final

INVOICE — DEPOSIT

Project: Website Design for ABC Ltd
Project Value: £5,000

Deposit (50% upfront): £2,500
Final Invoice (upon completion): £2,500

This invoice requests deposit payment of £2,500 to commence work.
Final invoice will be issued upon project completion.

Due date: 15 May 2026 (Due on receipt)

Final Invoice After Completion

INVOICE — FINAL

Project: Website Design for ABC Ltd
Project Value: £5,000

Deposit (already paid): -£2,500
Final payment due: £2,500

Total invoiced: £5,000
Less deposit paid: -£2,500
Amount due now: £2,500

Variations

• 33/33/33: Start, midway, completion (good for long projects)
• 25% milestone-based: Multiple checkpoints
• Non-refundable deposit: Clarify if client cancels

FAQ

Is a deposit legally binding?

If they refuse to pay after agreeing, you can pursue via small claims court. Document the agreement in writing (email confirmation suffices).

What if they request a refund after paying deposit but before work starts?

Your contract determines this. Make it clear: "Deposit is non-refundable" or "50% refundable if cancelled within 7 days".