A talk with my accountant friend about payment terms got me worried

We were having coffee in Phoenix last Tuesday and she said, 'If they push back on a 50% deposit, they're already planning to stiff you.' I've had two projects this year where the client argued hard against my standard deposit, and both ended up paying late with excuses. Do you think a deposit pushback is a solid red flag on its own?

4 comments

4 Comments

casey2681mo ago

Man, hearing that about Phoenix really hits home. I had a client last year who fought me for a week over a 30% deposit to start a job. They finally paid it, but then ghosted me for two months after I finished the work. Took sending a formal demand letter to get the rest. In my experience, if someone is already nickel and diming you before the work even starts, they've shown their hand.

craig.parker1mo agoTop Commenter

Yeah, that 30% fight is a huge red flag, @casey268. I've learned to make my deposit non-negotiable, right in the contract. If they push back hard on that initial good faith payment, it almost always means they're going to be a nightmare about the final invoice, just like your guy. It sets the whole tone for the job.

amy7541mo ago

Two months after finishing the work? That's wild. Craig.parker is totally right about the deposit setting the tone.

henry_anderson5411d agoMost Upvoted

A buddy of mine had a client who argued for days over a ten percent deposit on a simple website. They finally paid it, then went radio silent the second he sent the final draft. He had to get his lawyer to send a scary letter just to get paid, and it took another three months. The whole thing started with that first fight over a couple hundred bucks.