For larger projects, requesting a deposit or splitting payment into milestones protects your cash flow and reduces risk. Here's how to invoice it correctly.
Decide your split upfront
Common structures include 50% upfront and 50% on delivery, or a three-way split across deposit, midpoint, and completion. Agree on this before work starts, ideally in a contract or proposal.
Label each invoice clearly
Rather than just showing a partial number, state explicitly: 'Deposit invoice — 50% of total project cost ($4,000 of $8,000).' This avoids any confusion about what portion has been billed.
Show the running balance
On later invoices for the same project, include a short note showing what's been paid so far and what remains — this transparency reduces client questions.
Set a due date for each installment
Treat each partial invoice like a full invoice, with its own clear due date, rather than leaving timing vague.
What to do if a deposit isn't paid
State clearly, ideally in your contract, that work doesn't begin (or continue) until the deposit is received. This protects you from starting unpaid work.
Why this approach works
Splitting payment reduces your financial exposure on large projects and gives clients smaller, easier-to-approve amounts instead of one large invoice at the end.