Why Contractors Should Always Collect a Deposit (And How Much)

The Case for Deposits

Why Deposits Matter

Cash flow: Cover material costs before starting work

Commitment: Customers who pay deposits show up and don't ghost

Professionalism: Serious businesses require deposits

How Much to Charge

Small jobs (<$5K): 33-50%

Medium jobs ($5K-$15K): 25-33%

Large jobs ($15K+): 10-25%

How to Collect

The easiest way: send a digital approval link that includes deposit payment via credit card or bank transfer.

Key Takeaway: A 25% deposit is standard across the trades. Collect it digitally for fastest results.