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Every project carries risk, but some leave you so exposed that one missed payment could spell disaster. In these cases, asking for a customer deposit lets you accept the project with the knowledge that if something goes wrong, you’ll still be able to recoup your costs. Generally, there are four scenarios where it’s acceptable to ask customers to pay in advance. The size of the deposit depends on the risk you’re taking on. 10‒50 percent is typical. Ask what seems right to you. However, keep in mind that some states limit the amount of money you can ask for, but only for certain industries (ex: construction). Therefore, you may want to consult with a legal advisor before requesting a customer deposit. Instead of asking for a lump sum, some businesses use a pay-as-you-go structure. Customers pay as benchmarks are reached, ensuring steady income throughout the project’s lifecycle.When to Ask for a Customer Deposit