The short answer
Do not present a deposit as a sign that you distrust the client.
Present it as part of your standard project process.
Instead of:
Would you be able to pay 50% before we start?
use:
To reserve the kickoff, we take a 50% deposit. I’ll send the invoice today and we’ll confirm the start as soon as payment is received.
The difference is subtle but important.
One sounds negotiable and personal.
The other sounds like an established operating process.
Why agencies should consider deposits
When an agency begins work before receiving any payment, it finances the opening stage of the project.
That may be reasonable for some established clients.
But if it happens by default, the agency absorbs nearly all the risk.
A deposit can:
confirm the client’s commitment;
reduce your financial exposure;
prevent payment administration from beginning only after delivery;
expose procurement requirements before the team starts working.
That last point is underrated.
If the client needs a vendor form, PO, finance approval or particular invoice format, you would rather discover it before kickoff than 30 days after delivery.
Make payment part of kickoff readiness
A useful internal rule is:
No deposit = kickoff not yet confirmed.
That does not mean being inflexible with every client.
It means exceptions are deliberate rather than accidental.
What if you historically never asked for deposits?
You can change.
For new clients, simply introduce the policy.
For existing clients:
As part of tightening our project operations, new projects will now be confirmed with an upfront deposit before kickoff.
You do not need to justify it with a story about previous late payers.
What percentage should an agency take?
There is no universally correct percentage.
Common structures include:
50% upfront / 50% on completion;
30% upfront with milestone payments;
full payment upfront for smaller fixed projects;
monthly retainers billed in advance.
Choose the structure based on project length, risk and cash exposure rather than copying an arbitrary industry convention.
FAQ
Will a deposit make us look small?
Not inherently. Clear payment processes generally look more mature than ad hoc invoicing.
What if procurement cannot process the deposit quickly?
Find that out before promising the kickoff date.
Should I start work while the transfer is pending?
That is a business decision, but your policy should be consistent.
Can Collected42 handle deposits as well as late invoices?
Yes. The service is designed to work before payment becomes overdue: coordinating deposits, reinforcing payment terms, getting finance contacts and confirming payment before kickoff.