Retainer Invoice
Definition
An invoice for an advance payment a client makes to secure future services, drawn down as work is performed. The retainer is a liability until the services are delivered and earned.
Related Terms in Invoicing & Sales
Invoice Factoring
Selling unpaid invoices to a third party at a discount for immediate cash. The factor collects from the customers; the business trades a slice of the invoice value for faster access to funds.
Invoice Discounting
Borrowing against the value of outstanding invoices while the business keeps control of its own collections, unlike factoring. It releases cash tied up in receivables.
Payment Terms
The conditions on which a seller expects payment, such as net 30, net 60 or due on receipt, sometimes with early-payment discounts. Clear terms set expectations and support collections.
Net 30
A payment term meaning the full invoice amount is due within 30 days of the invoice date. Net 15 and net 60 work the same way with different windows.
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