Bonds and Deposits
Bonds and deposits protect your business against damage, loss, or non-payment. CloudRent Pro helps you track bonds from collection through to refund, ensuring nothing falls through the cracks.
Understanding Bonds vs Deposits
Term |
Definition |
Typical Use |
|---|---|---|
Bond |
Security against damage or loss |
Refunded in full if equipment returns undamaged |
Deposit |
Advance payment against rental charges |
Applied to final invoice, remainder refunded |
In CloudRent Pro, both are tracked the same way. The distinction is how you handle them at rental end.
Setting a Default Bond per Item
Configure a standard bond amount for equipment items:
Open the equipment item
Click Edit
Scroll to the Bond section
Enter the bond amount
Save the equipment
This amount is suggested when adding the item to rentals but can be overridden.
Bond Calculation Options
Fixed amount — e.g., $500 bond regardless of rental duration
Percentage of rental — e.g., 20% of total hire charges
No bond — For low-risk items or trusted customers
Adding Bonds to Rentals
When creating or editing a rental:
Go to the Charges tab
Find the Bond/Deposit section
Enter or adjust the bond amount
Save the rental
The bond appears as a separate line on invoices and quotes.
💡
Tip: For high-value equipment or first-time customers, consider requiring a bond even if you don't usually. It's easier to waive a bond than to recover losses.
Bond Handling on Invoices
Bonds appear on invoices in a dedicated section, separate from hire charges:
Invoice Breakdown
Equipment Hire: $1,500
Delivery: $150
GST: $165
Bond (refundable): $500
Total Due: $2,315
ℹ️
Note: Bonds are typically GST-free as they're refundable security, not a charge for goods or services. Check with your accountant for your specific situation.
Recording Bond Collection
Open the rental
Go to Payments
Record the payment
Select "Bond" as the payment type
Enter the amount and method
Save
Bond payments are tracked separately from hire payments for clear accounting.
Processing Bond Refunds
When equipment returns in good condition:
Open the rental
Go to Payments
Click "Refund Bond"
Enter the refund amount (full or partial)
Select refund method
Add notes if partial refund (explain deductions)
Process refund
Partial Refunds
If equipment is damaged, you can retain part of the bond:
Scenario |
Action |
|---|---|
No damage |
Refund 100% |
Minor damage |
Retain cleaning/repair cost, refund rest |
Significant damage |
Retain bond, invoice for additional repair costs |
Total loss |
Retain full bond, invoice for replacement value |
⚠️
Warning: Document all damage with photos before deducting from bonds. This protects you if customers dispute the deduction.
Bond Reports
Track outstanding bonds across your business:
Go to Reports
Select "Bonds Outstanding"
View all unreturned bonds
This report shows:
Rental reference
Customer name
Bond amount
Collection date
Equipment status (still on hire, returned, awaiting inspection)
Tips for Bond Management
💰 Set Appropriate Amounts
Bonds should reflect potential damage costs. A $200 bond on a $50,000 excavator offers little protection.
📝 Communicate Clearly
Explain bond terms upfront. Customers appreciate knowing exactly when and how they'll get their money back.
🎯 Process Refunds Promptly
Fast refunds build trust. Aim to refund within 48 hours of equipment return and inspection.
📂 Keep Records
Document bond collection, any damage found, and refund processing. This protects both you and the customer.
Card Pre-Authorisations
With Stripe integration, you can place a hold on a customer's card instead of collecting cash:
Enable pre-auth in Stripe settings
Enter the bond amount on the rental
Send payment link to customer
Funds are held (not charged) on their card
Release or capture at rental end
Pre-authorisations typically expire after 7 days. For longer rentals, you may need to capture and refund instead.