# Deposit terms

A term used when buying fencing.

How much a customer pays up front, which is what funds the material on a fence job.

Fencing buys posts and panels before it installs them, so a shop collecting half at signing runs on its customers' money and one collecting on completion runs on its own. That single term decides whether the business needs a line of credit at all, and it is the first thing a new owner can change and the first thing that upsets a crew's rhythm if changed badly. Read the deposit policy alongside the [backlog](https://searchspheresource.com/glossary/backlog): a long backlog on thin deposits is a cash trap.

Part of: Buying a Fencing Business (https://searchspheresource.com/guides/buying-a-fencing-business)

Source: https://searchspheresource.com/guides/buying-a-fencing-business/terms/deposit-terms
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt