Closet deposit policy: how much, when, and what to say

By the ClosetCRM team · November 2026

Take 50% when the client approves the quote and the balance on the day of installation. That is what most closet companies do, and it works because the deposit covers your materials before you order them. Below are the real numbers, sample wording you can copy, and the two mistakes that cost closet companies money.

What closet companies actually charge

50%The standard deposit

87%Of deposits are exactly half the job

25% to 60%The range we see

Half is so common that homeowners expect it. Going lower leaves you paying for materials out of pocket. Going higher than 60% starts to feel risky to a client who has not seen any work yet, and some states cap deposits on home improvement contracts, so check yours.

Collect it at approval, not later

77%Of deposits are paid within a day of the invoice

36% / 33% / 22%Paid by bank transfer / card / check, by dollars

When the deposit request goes out the moment a client signs, three out of four are paid within a day. The longer the gap between “yes” and “here is how to pay”, the more deposits turn into follow-up calls. Do not order materials until it clears.

Deposit and payment policy

DEPOSIT AND PAYMENT POLICY

1. Deposit. A deposit of 50% of the total is due when you approve the
   quote. We order your materials when the deposit is received, and
   your installation date is confirmed at that time.

2. Balance. The remaining 50% is due on the day of installation, once
   the work is complete and you have walked the space with our installer.

3. How to pay. Card or bank transfer through the secure link on your
   quote or invoice, or by check payable to [Company name].
   [Optional: A fee of [x]% applies to credit card payments.]

4. Changes. Changes after approval are written up as a change order
   with the new price. Changes after materials are ordered may add
   cost and move your install date.

5. Cancellation. You may cancel within [3] business days of approval
   for a full refund. After that, the deposit covers design time and
   any materials already ordered or cut, which are made to your
   measurements and cannot be returned. Any remainder is refunded.

6. Scheduling. If we cannot access the space on the agreed install
   date, a return trip fee of $[amount] may apply.

7. Late balance. Balances unpaid [15] days after installation accrue
   interest at [rate]% per month, where allowed by law.

Two mistakes that cost money

Ordering before the deposit lands. Closet parts are cut to one client’s measurements. If they back out, you own a pile of panels nobody else can use.
Vague cancellation terms. “Deposits are non-refundable” invites a dispute. Say what the deposit pays for: design time and materials already ordered. That is fair, and it holds up.

Should you charge a card fee?

About a third of closet payments by dollars are made by card. On a $4,000 job the processing cost is over $100. Many companies offer bank transfer at no fee and add a fee to credit cards. Rules on card fees differ by state and by card network, so check before you add one, and always show it before the client pays.

This is a starting point, not legal advice. Rules differ by state and province, so have a local lawyer read yours once before you use it.

Figures are combined across closet companies using ClosetCRM: 7,026 approved quotes and their invoices in the 12 months to November 2026. No single company’s numbers are shown.

Doing this in ClosetCRM

Set your deposit percentage once. Your client signs the quote and pays the deposit in one step, by card or bank transfer, once online payments are set up.

Clients pay by card or bank transfer from the link. You see the deposit land on the job, and an automation can move the job to the next stage.

For bigger jobs, show three payments on the quote instead of two: the deposit, a second payment and the balance, each named your way, such as “When materials arrive”.

Ask the AI assistant when you want it done by hand. It creates the invoice and leaves it for you to send.

Ask the assistant“The Whitfield quote was approved. Create the 50% deposit invoice.”

Try it free for 14 days

FAQs

Is a 50% deposit normal for custom closets?

Yes. It is the most common figure by a wide margin. Across closet companies on ClosetCRM, 87% of deposit invoices at the typical company are exactly half.

Can a closet deposit be non-refundable?

Usually the fair and defensible version is that the deposit covers design time and any materials already ordered, with any remainder refunded. Many states also give homeowners a short window to cancel a contract signed at home. Check your state’s rules.

When should the balance be due?

On the day of installation, after you walk the finished space with the client. At the typical company, final invoices are paid about two days after they are sent.

Should I take the deposit by check?

You can, but checks are slow and you should wait for them to clear before ordering. About a fifth of closet payments by dollars are still made by check.