TL;DR
A deposit invoice collects a percentage or fixed amount of a project fee before work begins, so the freelancer or agency has cash in hand on day one instead of billing everything at the end.
Plutio handles deposits through its split payment feature: toggle on "Split payment" inside any invoice, set the first stage to 30%, 40%, or 50% of the total, and assign a due date of today or the proposal signing date. Freelancers who collect deposits upfront reduce their exposure on every project, because a client who has paid $1,500 before work starts has a financial reason to stay engaged, respond to feedback, and approve milestones on time.
Deposit invoicing works on all Plutio plans, including the 7-day free trial. Connect Stripe, PayPal, or Square in Settings under Integrations, build an invoice with split payment stages, and the deposit request goes out when the invoice is sent.
What deposit invoicing is
A deposit invoice requests partial payment of a project fee before any deliverables are produced, turning the first stage of a split payment into an upfront commitment from the client.
In Plutio, deposit invoicing works through the split payment feature built into the Financials section. When creating or editing an invoice, toggling on "Split payment" in the invoice settings divides the total into two or more stages. The first stage becomes the deposit: a percentage like 50% or a fixed dollar amount like $1,500 on a $3,000 project. Each stage gets its own due date and payment link, and Plutio sends payment requests and reminders for each stage on its own schedule.
Percentage-based deposits
The most common deposit structure is percentage-based: 50% upfront and 50% on completion, or 30% upfront with 40% at a milestone and 30% on final delivery. When the invoice total changes due to scope adjustments, percentage-based deposits recalculate automatically. A 50% deposit on a $2,800 project adjusts to $1,400 without manual edits, and the remaining stages update to match. Plutio defaults to a 50/50 split when the "Split payment" toggle is first turned on, so the most common deposit structure requires zero configuration beyond flipping a switch.
Fixed-amount deposits
Fixed deposits work when the upfront amount is pre-agreed regardless of the final project total. A web developer might require a $2,000 deposit on every project above $5,000, with the balance invoiced on completion. Fixed amounts stay constant even if additional line items are added to the invoice later, which keeps the deposit terms stable throughout scope discussions. The core difference between percentage and fixed deposits: percentage deposits scale with the project total, so they adapt to scope changes automatically, while fixed deposits hold steady when the upfront amount is contractually locked.
Collecting a deposit changed everything for my studio. Clients who pay upfront treat the project differently, they respond faster, approve on time, and the cash flow keeps our pipeline moving without dipping into reserves.
Why deposit invoices matter for freelancers
Billing the full project fee at the end means the freelancer funds the entire project out of pocket, covering software subscriptions, stock assets, subcontractor fees, and weeks of labor before seeing any revenue.
On a $5,000 branding project spanning 6 weeks, the freelancer might spend $400 on fonts and stock photography, $800 on a subcontractor for illustrations, and 60+ hours of their own time before sending a single invoice. If the client pays late or disputes the final deliverable, those costs sit unrecovered. 63% of freelancers wait over 30 days from invoice submission to receiving funds, so the gap between expenses and revenue stretches well past the project timeline.
FreshBooks includes a deposit request field on invoices, but the deposit and the remaining balance are handled as separate billing events without a unified payment schedule visible to the client. HoneyBook ties payment schedules to its Smart File workflow, so deposits are configured inside a proposal-style document rather than on the invoice itself, and standalone invoices outside of a proposal require a separate setup step.
The worst outcome is not a late payment but a project abandoned mid-way. Without a deposit, a client who goes silent has no financial stake in the work. A $2,500 deposit on a $5,000 project changes the dynamic entirely: the client has skin in the game from day one, and ghosting becomes financially painful for both sides.
I stopped starting projects without a deposit after getting burned twice. Plutio makes it dead simple: toggle split payment, set 50% upfront, and the deposit request goes out with the invoice. Clients pay before I open a single file.
Plutio addresses the root problem by making the deposit the first stage of the invoice itself. The payment schedule is visible to the client inside the invoice, not in a separate document or a spreadsheet running alongside the project. When the deposit is paid, Plutio marks the stage as complete and queues the next stage automatically.
How deposit invoices work in Plutio
Open any invoice in Plutio, toggle on "Split payment" in the invoice settings, set the first stage as the deposit amount, and Plutio sends the deposit payment request when the invoice goes out.
Before starting, connect a payment gateway in Settings under Integrations. Plutio supports Stripe, PayPal, Square, and bank transfer for collecting payments.
Step by step
- Step 1: Open a new or existing invoice in Plutio's Financials section and add your line items with the full project total.
- Step 2: Toggle on "Split payment" in the invoice settings. Plutio creates two stages by default, each set to 50% with the first due today and the second due 7 days later.
- Step 3: Adjust the first stage to your deposit amount, either as a percentage (like 30% or 50%) or a fixed dollar amount. Set the due date to the proposal signing date or today. Add up to 5 stages total if the project has multiple milestones.
- Step 4: Review the payment schedule in the invoice preview. The client-facing view shows every stage, its amount, and its due date before the invoice is sent.
- Step 5: Send the invoice. The deposit payment request goes out immediately. Future stages queue and send on their scheduled due dates. Plutio marks each stage as paid when funds arrive and sends a notification.
Practical tip: attach the invoice to a Plutio proposal so the invoice auto-creates when the client signs. Then send the invoice with the deposit stage due immediately, and the first payment request goes out right after the project kicks off, with no manual follow-up needed.
Who needs deposit invoices
Freelancers and agencies billing project-based work above $1,500, particularly on branding, web development, and consulting projects spanning more than two weeks, benefit most from requiring a deposit before starting.
A freelance designer quoting a $3,500 brand identity project can set a 50% deposit ($1,750) due on proposal acceptance and the balance on final asset delivery. The $1,750 covers a month of software costs, any stock assets, and confirms the client is committed before the first concept is sketched. On projects below $1,000, a single invoice on completion is usually the simpler path.
Agencies running multi-phase projects, like discovery, wireframes, development, and launch, use the deposit as the first of 3 to 5 payment stages. The deposit funds the discovery phase, and each subsequent stage aligns with a deliverable sign-off. Plutio queues and sends each stage's payment request automatically, so the agency doesn't track due dates in a separate spreadsheet or calendar.
Freelancers exploring HoneyBook alternatives often ask whether Plutio supports deposit collection natively. Plutio handles deposits through its split payment feature on any invoice, including standalone invoices not tied to a proposal. Freelancers comparing FreshBooks alternatives find that Plutio's deposit and remaining balance stages appear on a single invoice with a unified payment schedule, rather than as separate billing events.
Bottom line: any freelancer or agency billing more than $1,500 per project gets immediate cash flow protection and stronger client commitment by collecting a deposit before the first hour of work.
| Feature | Plutio | HoneyBook | FreshBooks |
|---|---|---|---|
| Deposit on invoice | Yes, first split payment stage | Yes, via payment schedule in Smart File | Yes, deposit field on invoice |
| Unified payment schedule | All stages visible on one invoice | Tied to Smart File, not standalone invoice | Deposit and balance as separate events |
| Standalone invoice deposits | Yes, any invoice | Requires Smart File wrapper | Yes, any invoice |
| Auto reminders per stage | Yes, per-stage reminders | Yes, per-payment reminders | Invoice-level reminders only |
| Max payment stages | Up to 5 | Unlimited payments | 1 deposit + balance |
| Starting price | $19/mo (Core) | $36/mo (Starter) | $19/mo (Lite) |
