Invoice Types

What Is Prebilling?

Sending an invoice before work is completed or goods are delivered.

Detailed Explanation

Used to secure funding, deposits, or advance payments. The prebill is later reconciled against the final invoice reflecting actual work or delivery.

Example

A consulting firm prebills the first month of an engagement to cover startup costs.

Why It Matters

Improves cash flow on large projects but requires clear reconciliation at close.

Related Resources

Related Invoice Types Terms

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