When a customer deposit covers only part of the supplier order

How should a customer deposit be counted?

Count the deposit as cash already received that reduces what you need, but only if it is cleared in your account and the customer cannot take it back.

In the worksheet, the customer paid 25% of an $80,000 order, which is $20,000. That money is real, yet it covers well under half of the $54,800 you must spend before the goods reach the customer.

Two checks keep this line honest. First, confirm the deposit has landed in your business account and show it on a bank statement, since funders review statements. Second, read the order for refund language. A deposit that is refundable on request is a weaker offset than one the customer forfeits on cancellation.

If you have already spent part of the deposit on something else, subtract only what is still available. The gap should reflect cash you can actually point to.

What supplier obligation remains after the deposit?

The remaining obligation is the supplier's total price minus anything you have already paid them, due on the supplier's schedule rather than yours.

Many suppliers want the full amount before they ship. In the example that is $52,000 against a signed order, and the customer's balance of $60,000 does not arrive until after delivery. The two dates are the whole problem, so write both next to each other.

List the supplier's due date, accepted payment method and whether they hold the quote until paid. If you already sent the supplier a deposit of your own, show it as a separate line and reduce the remaining obligation by that amount.

Short-term working capital for inventory deals is the product most often reviewed for a gap like this. The funder that makes an offer sets terms after reviewing your file.

Which delivery costs belong in the gap?

Include every cost you pay before the customer settles: freight, handling, insurance, duties and any packaging the order requires.

The example adds $2,800 for freight and handling. It is the item owners most often forget, and leaving it out makes the gap look smaller than it is, which creates a second shortfall at the worst moment.

• Get a written estimate from your freight forwarder or carrier.
• Add customs duties if the goods cross a border, and ask your broker to confirm the figure.
• Add a modest cushion if rates on that route have moved recently.
• Leave out costs the customer pays directly under the order terms.

Do not add your own overhead such as rent or payroll to the gap unless the funder asks. Those costs exist whether or not this order ships.

How much do you actually need to request?

Request the net gap after the deposit, plus any delivery costs, and keep the balance collection date clearly in view, because that date is how the funding gets repaid.

The customer's $60,000 balance is the source of repayment in the example. State when the invoice goes out, the payment terms and the customer's history of paying on time. If the customer pays in 30 days and your repayment starts sooner, say so and ask the funder about the schedule before you accept.

A funder typically returns a decision within 24 hours of a complete application, and funding time varies by product. Attach the signed order, the supplier quote, a bank statement showing the deposit and the freight estimate. Our guide on funding a large purchase order explains the same file from the customer side.

When the numbers are ready, describe the purchase and deadline in the one online application. If the deal is built around a single signed order, the funding to fulfill a purchase order page shows how it is reviewed. There is no obligation to accept an offer, and checking options does not affect your personal credit score.

Walk away if the margin after funding cost is too thin to survive a late customer payment. A smaller order or a larger deposit may be the better deal.

Updated October 17, 2026 · Prime Funding Now Funding Team