Deposit Policies That Protect You (Without Scaring Clients Away)

You've been burned by cancellations before. Clients book, you turn down other work, then they cancel and you're out of pocket. A good deposit policy protects you—but how do you structure it without scaring clients away? Here's how.

Why Deposits Matter

Deposits aren't just about getting money upfront. They serve multiple purposes:

• Commitment signal: Clients who pay a deposit are far less likely to cancel
• Cash flow: Money in your account now, not months away
• Protection: Compensation if they do cancel and you can't rebook
• Professionalism: Serious businesses take deposits. It sets expectations

The vendors who struggle with no-shows and last-minute cancellations are almost always the ones with weak deposit policies—or none at all.

How Much Should You Ask For?

There's no single right answer, but here's what works for most mobile vendors:

For weddings, 50% upfront has become industry standard. Couples expect it. If you're only asking for 10-20%, you're leaving yourself exposed—and potentially signalling that you're less established.

When Should Deposits Be Due?

The deposit should be due immediately upon booking—not "within 14 days" or "when you can." Vague timelines lead to chasing and uncertainty.

A booking isn't confirmed until the deposit clears. Make this crystal clear:

"To secure your date, a non-refundable deposit of £[amount] is required. Your booking is provisional until payment is received. Dates are held on a first-paid basis."

For larger events, you might structure payments in stages:

• On booking: 25-30% deposit
• 8 weeks before: Second payment bringing total to 75%
• 1 week before: Final balance

Staged payments work well for high-value bookings (£2,000+) where asking for 50% upfront might be a barrier.

Refund Policies: The Hard Conversation

Your cancellation policy needs to balance fairness with protection. Here's a tiered approach that most clients find reasonable:

More Than 12 Weeks Before

Deposit retained, but you'll try to rebook the date. If you rebook at equal or greater value, you could offer a partial refund (say 50% of the deposit).

8-12 Weeks Before

50% of total booking value retained. You've likely turned down other enquiries and started planning.

4-8 Weeks Before

75% retained. You may have ordered stock or booked staff.

Less Than 4 Weeks

100% retained. It's nearly impossible to rebook a date this close.

These aren't arbitrary—they reflect the increasing difficulty of rebooking as the date approaches. Put them in your contract so there are no surprises.

How to Present Deposits Without Scaring Clients

The way you frame deposits matters. Don't apologise for them or treat them as unusual. Present them as normal, professional practice.

Language That Works

• Avoid: "We require a deposit before we can do anything"
• Better: "A 30% deposit secures your date and confirms your booking"
• Avoid: "The deposit is non-refundable"
• Better: "Your deposit guarantees we hold your date exclusively"

Explain the Value

Connect the deposit to what they're getting:

"Once we receive your deposit, your date is locked in and we'll begin planning your menu. You'll receive a confirmation email with all the details and next steps."

Make Payment Easy

The harder it is to pay, the more people will delay. Offer:

• Bank transfer (immediate, no fees)
• Card payment (convenient, small fee)
• Payment link in your quote or invoice

What If They Won't Pay a Deposit?

Occasionally, a client will push back. "We've never paid deposits before." "Can't you just invoice us after?"

This is a red flag. Clients who resist deposits are often:

• Not serious about the booking
• Planning to shop around until the last minute
• Likely to be difficult about payment later too

You can be flexible on the amount if they're a trusted repeat client. But don't waive deposits entirely. If they won't commit financially, they're not really committing at all.

A polite response:

"I understand—our deposit policy ensures we can hold your date exclusively while we plan your event. Without a deposit, we can't guarantee availability. I'd hate for you to miss out if another enquiry comes in for the same date."

Legal Considerations

A few things to keep your deposit policy on solid ground:

• Put it in writing: Your terms should be in the quote or contract they sign, not just mentioned verbally
• Be clear about "non-refundable": If a deposit is non-refundable, say so explicitly
• Keep cancellation fees proportionate: Under consumer law, you can only retain what covers your genuine losses—not punish the client
• Document your losses: If challenged, you should be able to show what the cancellation cost you

For business clients (corporate events), you have more flexibility. For consumer clients (weddings, private parties), the Consumer Rights Act applies and cancellation charges must be reasonable.

Template Deposit Terms

Here's sample wording you can adapt:

"A non-refundable booking deposit of [30%] is required to confirm your reservation. The remaining balance is due [7 days] before the event date. In the event of cancellation by the client: more than 8 weeks' notice—deposit retained; 4-8 weeks' notice—50% of total retained; less than 4 weeks' notice—full amount retained. We recommend event insurance for peace of mind."

Final Thoughts

A clear deposit policy protects you financially and filters out uncommitted clients. It's not about being difficult—it's about running a professional business.

The clients who balk at reasonable deposits are rarely the clients you want anyway. The good ones understand that holding a date means turning away other bookings, and a deposit is fair compensation for that commitment.

Set your policy, communicate it clearly, and stick to it. Your cash flow—and your peace of mind—will thank you.