# Funding a deposit to lock a supplier's price

A price lock is worth funding only if the written terms say what the deposit buys, whether it is refundable and when the balance is due. Read the supplier's terms before you move any money, compare the deposit to the cost of waiting, and plan the remaining balance before you commit. If the numbers hold up, a documented request is easier for a funder to review.

## Hypothetical example: price-lock decision checklist for a $60,000 order

| Question | Where the answer comes from | Example answer | Why it matters |
|---|---|---|---|
| Order total | Written quote | $60,000 | Confirms the full size of the buy |
| Deposit (25%) | Quote, payment terms | $15,000 | The amount at risk if the deal changes |
| Remaining balance | $60,000 minus $15,000 | $45,000 | What you must fund before release |
| Price-lock expiry | Quote date plus 14 days | Day 14 | Your deadline for deposit and balance |
| Deposit refundable? | Yes, no, or partly (get it in writing) | Written | Decides how much you can lose |
| Price if you miss the lock | Hypothetical 6% increase on $60,000 | $3,600 | The cost of waiting |
| Deposit as share of order | $15,000 / $60,000 | 25% | Check against your cash on hand |
All figures are hypothetical. Fill the second column from the supplier's written quote, and treat the 6% price increase as an illustration, not a forecast.

## Is the deposit refundable or nonrefundable?

A refundable deposit is a payment you can recover under stated conditions; a nonrefundable deposit is a cost you accept the moment you send it.

In the checklist, the deposit is $15,000, which is 25% of a $60,000 order. If it is refundable until a stated date, the risk is small. If it is nonrefundable, treat the full $15,000 as money you may lose and test whether the deal still makes sense under that assumption.

Many suppliers split the difference: refundable until production starts, nonrefundable after. Ask which applies and get the date in writing. Never rely on an email saying the deposit is "basically refundable".

## What price-lock terms should be in writing?

The written terms should name the locked price per unit, the quantity, the expiry date, what happens at expiry and who can change the terms.

- Unit price and total order value, with currency
- Exact quantity or the minimum and maximum range
- Expiry date for the lock and for the balance
- Whether freight, duty or surcharges can be added later
- The supplier's cancellation and refund languageA verbal promise to hold a price does not help if the supplier's invoice differs. If the quote is vague on any line, ask for a corrected version before you apply. A clean quote is also the first thing to show a funder; our guide to [presenting a deal to a funder](https://primefundingnow.com/blog/present-a-deal-to-a-funder/) shows how to lay it out.

## How do you plan for the remaining balance?

Decide how the balance will be paid before you pay the deposit, because a locked price with no way to pay the rest is the worst outcome.

The example balance is $45,000, due by day 14. If your cash covers the deposit but not the balance, the balance is the number to fund. A credit line can suit a repeat supplier, while a one-time purchase may suit short-term working capital. The [line of credit for buying opportunities](https://primefundingnow.com/funding-solutions/line-of-credit-for-buying-opportunities/) page explains how a revolving line is reviewed.

Funders typically give a decision within 24 hours of a complete application, but funding time varies by product. Apply early enough that the decision and funding fit inside the lock window, not at its last hour.

## What happens if the purchase changes?

If the order changes, the supplier's terms decide what happens to the deposit, so know the answer for a smaller order, a delayed order and a cancelled order before you pay.

Ask three plain questions. If I reduce the quantity, does the locked price still apply? If production is delayed, does my lock extend? If I cancel, what do I get back? In the example, a missed lock could mean a hypothetical 6% increase, or $3,600 on $60,000. Compare that to the deposit at risk and the cost of the funding you are considering.

If you would be unable to proceed without the supplier, or the deposit is a large share of your cash, the honest answer may be to skip the lock and wait. Prime's guides say so when a deal is not worth funding.

## Which documents help the application?

Send the written quote with the price-lock terms, proof of the deposit if paid, and the usual bank and identity documents.

Recent business bank statements, government-issued ID and a voided business check are commonly requested, and larger requests may add tax returns or financial statements. When you are ready, [start the online application](https://primefundingnow.com/apply/) and attach the supplier's terms. The [credit line for supplier deals](https://primefundingnow.com/offers/credit-line-for-supplier-deals/) page shows what a funder looks at for this kind of request.

## Frequently asked questions

**Should I fund a supplier deposit or only the balance?**

It depends on timing and cash. A deposit is often due at once, so many owners pay it from cash and fund the larger balance. If you need funding for the deposit itself, include the quote and the expiry date in your application.

**Is a nonrefundable deposit ever worth it?**

Sometimes, when the locked price saves more than the deposit could cost you and you are confident you will complete the order. Compare the deposit at risk with the cost of a price increase, and confirm the terms in writing first.

**What if the supplier will not put the lock in writing?**

Treat the lock as unconfirmed. Ask for a signed quote or proforma invoice stating price, quantity and expiry. Without it, a funder has little to review, and you have little protection if the price changes.

**Can I apply before I pay the deposit?**

Yes. Applying early gives time for a decision before the lock expires. Include the supplier's quote and the expiry date, and note whether the deposit is refundable.

**Is there an obligation to accept an offer?**

No. Checking your options does not affect your personal credit score, and you can decline any offer. Rate, term and payment schedule vary by product and by the strength of your business.

Apply: https://primefundingnow.com/apply/
Canonical: https://primefundingnow.com/guides/supplier-price-lock-deposit-funding/
Updated: 2026-10-17