Commercial

Deposit

Definition

Partial payment made before or during service delivery. The deposit secures the freelancer by financially committing the client. Usually set between 30% and 50% of total amount.

Detailed explanation

The deposit has three functions. Financial: it covers the provider's cash flow during execution (equipment, subcontracting, time). Legal: it contractually commits the client to the project (payment counts as acceptance of the quote). Psychological: a client who has paid 30 % is a client who visualises delivery. To be distinguished from a 'good-faith payment' (which can be refunded if cancelled): the deposit is not refunded if the client withdraws after work has started.

Concrete example

8,000 € excluding tax project invoiced in 3 stages: 30 % deposit (2,400 € on signature), 40 % intermediate (3,200 € on mockup approval), 30 % balance (2,400 € on delivery).