In the context of freelance work, a deposit is an upfront payment made by the client to the freelancer before the work begins. The deposit is usually a percentage of the total project fee, and it serves as a commitment fee or down payment to secure the freelancer’s services.
The purpose of the deposit is to protect the freelancer’s time and effort and ensure that the client is serious about the project. It also helps to cover some of the freelancer’s initial costs, such as software licenses, stock images, or other resources needed to start the project.
The deposit amount and terms may vary depending on the project and the agreement between the freelancer and the client. Typically, the deposit is non-refundable, but it may be credited towards the final payment once the project is completed.
See also: Direct Deposit, Upfront Payment, Estimate