The supplier asks for a 50% deposit: how to protect yourself

In brief: a 50% deposit is not in itself a negative sign — it is common practice for orders of significant value or made-to-order production. The problem is not the request, but accepting it without first checking who is making it, and without distinguishing whether it is a deposit (acconto) or a confirmatory deposit (caparra confirmatoria): the difference changes your protections if the supplier then fails to deliver.

Why a supplier asks for such a high deposit

The legitimate reasons vary: covering the cost of raw materials or components bought specifically for your order, financing a made-to-order production that cannot be resold to other customers if you change your mind, or simply established practice for orders above a certain threshold in that sector. A high deposit is therefore not automatically a sign of supplier difficulty — but it is still an exposure worth checking before accepting it, whatever the stated reason.

Before accepting: check who you are dealing with

• How long the company has existed and whether it has readable filed balance sheets, or whether it is too young to have any (see the dedicated guide in that case).
• Current financial strength: a 50% deposit to a company with an already eroded net equity exposes you more than the same deposit to a financially solid company.
• Beneficial owner and protests: the same two checks valid for any supplier, even more relevant when your financial exposure is higher than usual.

Deposit or confirmatory deposit: specify it in the contract

If the supplier then fails to deliver, your protection depends on what you actually paid. A deposit (acconto) must be returned in full if the contract is terminated for non-performance (art. 1453 c.c.), plus any proven damage. A confirmatory deposit (caparra confirmatoria) (art. 1385 c.c.), by contrast, lets you withdraw and claim double the amount paid, without having to prove the damage suffered — a stronger protection, but one that must be written explicitly into the contract: using the word "acconto" verbally or in an email is not enough to secure this treatment.

How to structure the payment to reduce the risk

Beyond the preliminary check: a bank or insurance guarantee covering the deposit, especially for significant amounts; a payment staggered in several instalments tied to verifiable stages of production, instead of 50% all up front; or, for a first supply with a new supplier, negotiating a smaller deposit in exchange for a price discount, reserving the 50% for subsequent reorders once trust has been established.