You pay for materials on order, wages at the end of the month, and the customer pays the final invoice sometime after that. In many trade businesses that gap gets financed by the overdraft, and that is the most expensive bank in the world. Advance payments close the gap, and they are standard practice in the trade. You just need to agree them and bill them cleanly.
When an advance payment makes sense
As a rule of thumb: as soon as a job runs longer than two to three weeks or needs significant material outlay, a payment schedule belongs in the quote. Common models include:
- Thirds: one third on award of the job, one third once work is under way, the rest with the final invoice.
- Material share upfront: material costs on order, labour billed as work progresses.
- Monthly partial invoices based on actual progress on longer projects, backed by the work reports.
The timing of the agreement matters: it belongs in the quote, not on the first invoice. What is written into the accepted quote is agreed; what turns up later invites arguments.
Issuing an advance payment invoice correctly
An advance payment invoice is a normal invoice with two particularities:
- Label it clearly as an advance payment: “1st advance payment invoice per quote no. 2026-001” and reference the job.
- Handle VAT correctly: advance payments are also subject to VAT; the rate (8.1%) is shown on every partial invoice. Details in the guide VAT for Swiss trades.
Every advance payment invoice gets its own QR payment slip with its own reference, so payments can be matched cleanly (how the QR invoice works).
The final invoice: deduct transparently
The final invoice lists the full scope of work, deducts the advance payments received one by one, and shows the remaining balance:
Total labour and materials: CHF 24’800.00
VAT 8.1%: CHF 2’008.80
Total incl. VAT: CHF 26’808.80
./. 1st advance payment, 5 May 2026: CHF 9’000.00
./. 2nd advance payment, 2 June 2026: CHF 9’000.00
Balance due: CHF 8’808.80
This lets the customer see at a glance that nothing is billed twice. Nothing destroys trust faster than a final invoice where the customer has to hunt for the advance payments.
When an advance payment does not arrive
An unpaid advance payment invoice is a warning sign you should not ignore: otherwise you keep working at your own risk. The approach:
- Follow up briefly, as with any payment reminder: often it is just an oversight.
- If payment still does not arrive, stop work, provided the advance payment was agreed. Communicate this factually and in writing.
- On larger construction projects, think early about the builder’s lien; the four-month deadline runs from completion of the work.
Keeping track
With two or three parallel projects and two advance payment invoices each, bookkeeping quickly gets confusing: what is outstanding, what is paid, what is missing from the final invoice? In MeisterOffice advance payment and final invoices are attached to the project, payments reconcile automatically via the QR reference, and the final invoice deducts the advance payments received on its own. Pricing is here.
Frequently asked questions
Can I ask private customers for an advance payment? Yes. Advance payments are purely a matter of agreement and are allowed and common with both private and business customers. For small jobs under a few thousand francs, most people skip it.
How high can the first advance payment be? 30 to 40% on award of the job is common. Much more looks off-putting and is also risky for you if the customer pulls out and you have to repay it.
Is an advance payment the same as a deposit? In everyday use the terms get mixed up. They usually mean the same thing: a payment made before the final invoice. What matters is not the word, but that the amount and due date are agreed in writing.