Why the deposit is the moment that matters
Before a deposit, you can still ask questions, negotiate and walk away for free. After it, every gap in the quote becomes harder and more expensive to fix. A few minutes of checking at this point is the cheapest protection you'll get.
The deposit checklist
- What does the deposit pay for? Materials, booking the time, or nothing specific?
- How much is due before delivery in total, and what triggers each payment?
- What does “finished” mean, and how do you accept or reject the work?
- Who owns the work, files, code or materials at the end — and is that in writing?
- What happens to the deposit if either side cancels, or the start date slips?
- Is the business who it says it is? Check its registered business details and, for trades, any licence your state requires.
- Have you checked one or two references or recent jobs yourself?
Keep the deposit proportionate
A safer pattern is staged payments tied to finished milestones, so the money you've paid never runs far ahead of the work you've received. Rules on deposits differ between states and industries — check your state's fair trading or consumer affairs office for what applies to you.
Frequently asked questions
How much deposit is normal?
It varies by industry and state, and some trades have legal limits. Ask what the deposit covers, and check your state's fair trading or consumer affairs office for the rules that apply.
Is a deposit refundable?
It depends on the agreement and the law where you are. Never assume — get the refund terms in writing before you pay.
What's the safest way to pay a supplier?
Staged payments tied to finished milestones, paid by a traceable method to the business's verified account, with the terms agreed in writing first.