Security Deposit Process

What is a security deposit?

A security deposit is a payment made by a customer to us, the supplier at the start of their contract. This payment offsets any outstanding debt that a customer may accrue by the end of their contract.

When do we need a security deposit?

If a customer’s credit score is below the agreed threshold, we need to mitigate that financial risk by requesting these funds.

Before we ask for a security deposit, we speak to our insurance company and apply for a higher level of insurance cover. If successful, this replaces the need for a security deposit. If the insurer can’t provide this cover, that’s when we need the customer to pay the security deposit.

We typically calculate security deposits based on 3 months’ estimated bill value.

What happens to the deposit at the end of the contract?

If a customer has unpaid debt on their account after the contract ends, we’ll deduct that amount from the security deposit. Any money that is not used to cover outstanding debt will be returned to the customer. If there is no unpaid debt, the full deposit amount will be refunded.