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How Much Deposit Should a Tradesman Charge?

Updated June 2026 · 4 min read

Asking for a deposit is the single fastest way to stop funding your customers' jobs out of your own pocket — and to weed out the time-wasters. The question is how much, and how to ask without scaring the customer off.

The rule of thumb

There's no law setting a deposit amount in South Africa — it's whatever you and the customer agree. But most trades land in these ranges:

The principle: your deposit should at least cover what you have to spend before you've earned a cent — the materials, the equipment, the sub-contractor. Never be out of pocket waiting to be paid.

Deposit vs progress payments on big jobs

On a long job — a building project, a big install — don't try to carry it on one deposit and a final bill. Structure it: a deposit to start, then progress payments at agreed stages (e.g. on delivery of materials, at first fix, on completion). It keeps cash flowing to you and keeps the customer's risk low at every step. (See how the quote-to-invoice flow works.)

How to ask so they pay gladly

Frame the deposit as normal and in their interest, not as you not trusting them:

"To lock in your slot and order the materials, I take a 40% deposit up front — R3,600 — and the balance on completion. I'll send you a pro forma now so you've got it in writing."

Three things make that work: it's in writing, it's tied to a reason (slot + materials), and it comes on a professional document — not a number in a WhatsApp. A scribbled figure feels dodgy; a branded quote or pro forma with a clear deposit line feels like a real business.

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Use a pro forma to collect it

The clean way to request a deposit is a pro forma invoice — it looks official, gives the customer something to load for payment, and isn't a tax invoice yet (so there's no VAT headache until the real invoice). When the deposit lands, you start. When the job's done, you issue the tax invoice for the balance.

The bottom line

Match the deposit to your up-front spend, put it in writing on a proper document, and tie it to a reason. Do that and deposits stop feeling awkward — they become the thing that keeps your business solvent and your customers committed.

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