Advance payment

An advance payment, or simply an advance, is the part of a contractually due sum that is paid or received in advance for goods or services, while the balance included in the invoice will only follow the delivery. It is called a prepaid expense in accrual accounting for the entity issuing the advance.

See also

• Advance against royalties
• Pay or play contract
• Signing bonus
• Prepaid expense

External links

• Dictionary of Small Business definition: "advance payment"

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