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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