What are some red flags regarding holding deposits?

Short answer

Red flags include a supplier demanding cash only, a very large deposit, no written contract, pressure to pay immediately, or vague cancellation terms. Also be wary if they refuse to give a receipt or cannot confirm your date in writing.

There are several red flags to watch for when paying a holding deposit. First, if the supplier asks for cash only, that is a warning sign, as you have no paper trail. A legitimate business will usually accept bank transfer or card. Second, be cautious if the deposit is unusually large, for example more than a third of the total cost. Most deposits are a modest percentage, but there is no fixed rule. Third, if the supplier will not give you a written contract or a detailed invoice, walk away.

Other red flags include pressure to pay on the spot, saying the date will not be held otherwise. A reputable supplier will give you time to think. Also be wary of vague cancellation terms, such as 'deposit non-refundable' without explaining what happens if you cancel. Ask for the policy in writing. If they refuse, that is a bad sign.

Check that the supplier is legitimate. Ask for their full business name, address and contact details. You can search for reviews or ask to see their public liability insurance. If they are a venue, check they have the correct licences for weddings. If anything feels off, trust your instincts. You can also check GOV.UK for guidance on consumer rights. Never pay a deposit without a clear, written agreement.