Deposits and prepayments: a friendly guide for service businesses
When to ask for payment up front, how much to take, and how to explain it so clients feel looked after rather than charged.
On this page
Taking money before an appointment protects your time, but it has to feel fair. Here is how to decide when to ask, how much, and what to say.
When a deposit makes sense
- Long services that block a large part of your day.
- Appointments that need products ordered in advance.
- New clients for high-demand slots.
- Clients who have missed an appointment before.
How much to ask for
A deposit should be large enough to matter and small enough not to put people off. A fixed amount or a modest percentage of the price works for most businesses. For short, low-cost services, full prepayment is often simpler.
Refunds and rescheduling
Decide your rule and say it plainly: for example, the deposit is refunded or moved to a new time with 24 hours' notice. Being generous with rescheduling keeps goodwill high.
What to say
"To keep this time just for you, we take a small deposit when you book. It's taken off your bill on the day."
Frequently asked questions
Is a deposit the same as prepayment?
No. A deposit is part of the price taken in advance; prepayment is the full price. Both reduce no-shows; deposits feel lighter for new clients.
Can clients still pay at the venue?
Yes. You can offer online payment, pay later, or both, per service.
What if a client cancels late?
Follow your policy, but use judgment. Keeping a loyal client often matters more than keeping one deposit.
