A deposit makes most sense when a project is new, large, or for a client you haven't worked with before, because it confirms the client's commitment before you put time in and covers some of your early costs. It adds less on retainers, which suit SEPA direct debit, or with large clients whose purchase order process may not allow payment before work starts. Whatever you decide, put it in the proposal, so the deposit invoice is something the client has already agreed to.
In this article
The short version
- A deposit suits new clients, large projects and costs you pay up front.
- The amount and whether it's refundable are set by your contract.
- A payment link lets the client pay a deposit by card or bank transfer.
- Large clients may need a short first milestone in place of a deposit.
- Retainers suit SEPA direct debit more than a deposit.
When a deposit makes sense
The case for a deposit is about risk and cash. Before work starts you're spending time with nothing invoiced, and with a new client you don't yet know how they pay. A deposit moves some of that risk back to the client and confirms the project is going ahead.
The case against is friction at the start, because a first invoice before any work can feel abrupt to a client used to paying in arrears. If their accounts team needs a purchase order or a supplier set-up form first, waiting for the deposit can hold up the start of the project.
| Situation | Deposit? | Why |
|---|---|---|
| New client, first project | Usually | No payment history to go on |
| Project with costs you pay up front, such as media, printing or software | Yes, at least for those costs | You aren't funding the client's spending |
| Existing client with a good payment record | Optional | Their record gives you some security |
| Monthly retainer | Rarely | Direct debit collects each fee on its due date |
| Large corporate client or public body | Ask, and expect a purchase order process | Their process may not allow payment in advance |
How much to ask for and what it covers
The amount is a commercial choice, and one way to set it is to match what the first phase of the work costs you, so the deposit covers your exposure if the project stops there. Where you pay costs on the client's behalf, such as media, printing or software, ask for those in full before you commit them, separately from your fee.
Decide as well what happens to the deposit if the client cancels. Whether it's refundable in full, in part or not at all is a matter for your contract, so set it out in the proposal or statement of work the client signs.
Then treat the deposit as the first of your milestones, with the balance following in stages tied to sign-off points, each with its own payment date.
Deposits also show up on the VAT side, since among the details Revenue says a VAT invoice must carry is the date of any payment on account received before the supply, so your invoice for the finished work should show when the deposit came in. Check the VAT treatment of deposits with your accountant.
How to collect it without delaying the start
A deposit only helps if it's paid quickly, so make paying it as easy as accepting the proposal. A payment link on the deposit invoice lets the client pay there and then, by card, Apple Pay, Google Pay or bank transfer.
Take a €1,500 deposit on a €6,000 website project. Paid by bank transfer through Adfin, it costs €2.20, because the price is 20c + 1% and the 1% part is capped at €2 on bank transfer and direct debit. Paid by card at the standard price, which isn't capped, it costs €15.20. There's no monthly fee, setup fee or contract on top.
Adfin sends payment links by email, SMS or WhatsApp, so the link can go straight to whoever approves payments at the client, and payments taken through it are marked paid in Xero or QuickBooks automatically. If the deposit is slow to arrive, Adfin's free Essential credit control sends unlimited reminders on the same channels, and its aged debtors view lets you give each client an owner and next steps.
Clients who won't pay up front
Some clients won't pay before work starts, sometimes because their process is built around paying against a purchase order for delivered work. With those clients, a short first milestone does a similar job, invoiced on delivery, with a payment date written into the contract. Ask for the purchase order number and supplier set-up form early, so the first invoice isn't held up.
You don't have to accept long terms in place of a deposit. Between businesses, a payment date more than 60 days after delivery has to be expressly agreed in the contract and can't be grossly unfair to you. For public bodies, the government expects suppliers to be paid within 15 calendar days of a valid invoice under an administrative policy, and the Regulations set a 60-day ceiling from delivery.
For retainer clients, a deposit rarely adds much. A SEPA direct debit mandate, signed once, lets you collect each month's fee on its due date after notice of at least 14 calendar days, unless you agree a shorter period.
Common questions
How much deposit should an agency ask for? The amount is a commercial choice you agree with the client. Matching it to what the first phase of work costs you, plus any third-party costs you pay on their behalf, is one way to set it.
Is a deposit refundable if the client cancels? That depends on what your contract says, so set out in the proposal whether the deposit is refundable in full, in part or not at all if the project stops.
Can a client pay a deposit by card? With a payment link on the invoice, a client can pay by card, Apple Pay, Google Pay or bank transfer. With Adfin, bank transfer costs at most €2.20 on a deposit up to €2,000, while the standard card price of 20c + 1% isn't capped.
Does a deposit need to appear on the VAT invoice? Revenue's required details for a VAT invoice include the date of any payment on account received before the supply. Ask your accountant or Revenue how that applies to your deposits.
What if a large client won't pay a deposit? Use a short first milestone invoiced on delivery, with a payment date in the contract and the purchase order number on the invoice. Terms over 60 days between businesses must be expressly agreed and not grossly unfair to you.
Should retainer clients pay a deposit? A deposit adds little to a retainer, because SEPA direct debit collects each month's fee on its due date once the client has signed a mandate.
Sources
- Revenue - Information required on a VAT invoice (accurate as of November 2026) https://www.revenue.ie/en/vat/vat-records-invoices-credit-notes/invoices/information-required-vat-invoice.aspx
- Irish Statute Book - S.I. No. 196 of 2014, European Communities (Late Payment in Commercial Transactions) (Amendment) Regulations 2014 (accurate as of November 2026) https://www.irishstatutebook.ie/eli/2014/si/196/made/en/print
- Department of Enterprise, Tourism and Employment - Prompt payment returns (accurate as of November 2026) https://enterprise.gov.ie/en/what-we-do/supports-for-smes/late-payments/prompt-payment-returns/
- European Payments Council - 2025 SEPA Direct Debit Core Rulebook (accurate as of November 2026) https://www.europeanpaymentscouncil.eu/node/26581
