Yes, for most orders. Once you've ordered a laptop or committed to a year of licences, you owe your distributor whether or not the client pays you, so taking some or all of the money first stops you lending the client the cost of their own kit. Ask for it when the quote is accepted, make it easy to pay, and only release the order once it's in.
In this article
The short version
- Once you order hardware or annual licences, you owe your distributor whether or not the client pays you.
- A deposit or full payment on acceptance stops you funding the client's kit for weeks.
- Annual Microsoft licences are committed after a seven-day window, so collect before ordering them.
- Paid by bank, a £3,600 order costs £4.20 on Adfin's pricing, against £72.20 on a business card.
- Release the order once the invoice shows as paid in Xero or QuickBooks.
Why a hardware order ties up your cash
Say a client signs off three new laptops at £1,200 each, so £3,600 including VAT. You order through your distributor, the kit arrives, an engineer images it and drops it off, and then you invoice on your usual 30-day terms.
Your distributor wants paying on its terms, not your client's. If the client pays on day 30, you've carried £3,600 for a month. If they pay on day 50 because their finance team only runs payments twice a month, you've carried it for seven weeks, and you'll have paid your own supplier long before the money comes back. Across a handful of refreshes a quarter, that can add up to a sizeable chunk of your overdraft.
There's a second risk too. If the client changes their mind after the order's placed, or goes quiet, you may be left holding stock that was configured for them and is hard to return.
How much to ask for and when
There's no industry standard figure, so set a rule that fits your margins and your clients, and put it in your terms so nobody's surprised. The common approaches are:
- Full payment up front for hardware and one-off software, which removes the cash gap entirely.
- A deposit of around half on acceptance, with the balance on delivery or installation.
- Payment on delivery for long-standing clients with a good payment record, if you're comfortable carrying the cost for a few days.
Ask at the moment the client accepts the quote. They've just said yes and want the kit, so paying is the natural next step. If the request turns up as a separate invoice a week later, it joins the queue with everything else.
How the client pays affects what the deposit costs you. On Adfin's published pricing, a £1,800 deposit paid by bank costs £4.20, because the percentage is capped at £4 for bank payments. The whole £3,600 paid by bank also costs £4.20. The same £3,600 paid on a business card costs £72.20 at 2% + 20p. So it's worth putting pay by bank first and keeping card as the option for clients who need it.
What about licences?
Licences can tie you in for longer than hardware. Under Microsoft's new commerce terms, an annual subscription can be cancelled with a full refund within 24 hours and a prorated refund within seven days. After that you're committed for the year, whether it's billed to you upfront or monthly.
So if a client asks for 25 extra seats on an annual term and later disputes the order, you're the one still paying for them. For annual commitments, it's sensible to take the first year, or at least the first period, before you place the order, and to make the commitment clear on the quote. Monthly-term licences carry less risk and can usually go on the next recurring invoice.
How to release the order once the money is in
The deposit only helps if ops know it's arrived. In many MSPs the engineer or account manager asks finance, finance checks the bank, and the order sits for a day or two in between. One-off payments can also land with a vague reference that nobody can match to the quote.
A simple routine closes that gap:
- Raise the deposit invoice in Xero or QuickBooks when the quote is accepted, with the order or quote number on it.
- Send the client a payment link straight away, rather than bank details to copy.
- Agree one place where ops check payment status, so nobody has to ask.
- Place the order once the invoice shows as paid, and add the balance to the delivery invoice.
Adfin covers steps 2 and 3 for you. You send a payment link by email, SMS or WhatsApp, the client pays by bank, card, Apple Pay or Google Pay, and pay by bank settles the same day. The invoice is marked paid in Xero or QuickBooks automatically, so whoever places the order can see it's paid without waiting on finance. If the deposit hasn't come in after a couple of days, Adfin's collection agents can send a reminder carrying the same link, on the schedule you've set.
Common questions
Is it normal for MSPs to take a deposit on hardware? Yes, many MSPs ask for full or part payment before ordering, and putting it in your standard terms makes it routine rather than awkward.
How big should a hardware deposit be? There's no fixed rule. Half on acceptance is common, and full payment up front removes the cash gap entirely.
Can I take a deposit for Microsoft licences? Yes. For annual commitments it's sensible to collect before ordering, because after the seven-day window you owe the full term.
What if the client won't pay a deposit? You can still order, but you're funding the kit until they pay, so shorter terms on that invoice or payment on delivery keep the gap small.
Should I let clients pay a deposit by card? You can, but on a business card it costs more than a bank payment, so offer pay by bank first and card as the fallback.
Do I need a separate invoice for the deposit? It helps. A deposit invoice with the quote number on it is easy to match and shows clearly when the order can go ahead.
Sources
- Microsoft Learn - New Commerce Experience cancellation policy (accurate as of October 2026) https://learn.microsoft.com/en-us/partner-center/customers/new-commerce-cancellation-policy
- Microsoft Learn - Overview of Partner Center billing (accurate as of October 2026) https://learn.microsoft.com/en-us/partner-center/billing/billing-basics
- Adfin - Pricing (accurate as of October 2026) https://www.adfin.com/pricing
- Adfin - Accept payments (accurate as of October 2026) https://adfin.com/accept-payments
