Deposits
Should freelancers charge a deposit, and how much?
Short answer
Yes. A deposit before work starts protects you if the client stalls or cancels, and it filters out clients who were never going to pay. Many freelancers ask for a third to half up front and tie the rest to delivery or milestones. PaloWorks defaults to 50% and issues the deposit invoice the moment the client signs.
Free for 1 client, 3 active projects. No card to start. Updated by PaloWorks.
Worked example
A $6,000 brand project
PaloWorks' default 50% deposit, with the balance due on delivery.
- Project price
- $6,000
- Deposit (50%), invoiced when the client signs
- $3,000
- Balance, invoiced on delivery
- $3,000
- Final files
- Released when the balance is paid
What to look for
A deposit before any work
Work done before money moves is a loan to your client.
In PaloWorks
A default deposit percentage (50% unless you change it) and a Create deposit invoice button on the project.
The rest tied to progress
One final invoice for the whole balance is the hardest invoice to collect.
In PaloWorks
Agreement payment plans of up to 12 payments, each due on signature, a date, delivery or a key milestone.
Invoices that issue themselves on signature
The moment a client signs is when they are most ready to pay.
In PaloWorks
When the client signs the agreement, the payments due go out as invoices automatically, ready to pay by card or bank debit.
No work without a signature
A deposit without an agreement is a payment for undefined work.
In PaloWorks
An optional rule holds the deposit invoice until a signed agreement exists.
Leverage at the end
Final files are the strongest reason a client has to pay the balance.
In PaloWorks
Hold deliverables until an invoice is paid; the client's download opens when it clears.
How it works in PaloWorks
Step 1
Set your deposit
Choose your default percentage in settings, or a payment plan on the agreement.
Step 2
The client signs
They sign from the link emailed to them. No account.
Step 3
The deposit invoice goes out
Payments due on signature are invoiced automatically, with a Pay button.
Step 4
The balance follows the work
Milestone and delivery payments are invoiced as you reach them; files can wait for the last one.
When PaloWorks is the wrong pick
- If you bill a retainer every month in advance, a recurring invoice fits better than a project deposit.
- A deposit policy is a business decision; refundability and wording belong in your contract, reviewed by a lawyer where you work.
Comparing tools? Read PaloWorks compared, including what the others are better at.
Questions people ask
- How much should a freelance deposit be?
- Many freelancers ask for between a third and half up front. Larger or longer projects often split the rest across milestones. PaloWorks defaults to 50%, and you can set any whole percentage.
- Should the deposit be refundable?
- Say so in your contract either way. Many freelancers make the deposit non-refundable once work has started, because it pays for time reserved. Check what is enforceable where you work.
- Can PaloWorks send the deposit invoice automatically?
- Yes. When the client signs an agreement with a payment plan, the payments due on signature are invoiced automatically.
- Can I set a fixed deposit amount instead of a percentage?
- Deposits are set as a whole percentage of the job. For a fixed amount, create the deposit invoice for that amount yourself.