Deposit
Payment TermsA partial upfront payment made before goods or services are delivered.
Detailed Explanation
A deposit is a portion of the total cost paid in advance, often to secure a booking, demonstrate commitment, or offset supplier costs. Deposits protect sellers from cancellations and give buyers assurance that their order is confirmed. The remaining balance is typically invoiced upon completion or delivery. Deposit terms should clearly state if deposits are refundable, under what conditions, and how they're applied to the final invoice.
Examples
- 50% deposit required to begin custom furniture manufacturing
- A photographer requires a $500 deposit to book a wedding date
Quick Q&A
What is Deposit?
A partial upfront payment made before goods or services are delivered.
What does "Deposit" mean?
A deposit is a portion of the total cost paid in advance, often to secure a booking, demonstrate commitment, or offset supplier costs. Deposits protect sellers from cancellations and give buyers assurance that their order is confirmed. The remaining balance is typically invoiced upon completion or delivery. Deposit terms should clearly state if deposits are refundable, under what conditions, and how they're applied to the final invoice.
When is Deposit used?
50% deposit required to begin custom furniture manufacturing ; A photographer requires a $500 deposit to book a wedding date