2 min read
Definition
Milestone billing is invoicing a customer at pre-agreed points in a project as each milestone is reached, rather than in one lump at the end. It aligns cash coming in with work delivered, keeping a long project's cash flow healthy.
In plain terms
Each milestone — design approved, phase complete, product shipped — triggers an invoice, so cash arrives steadily as value is created. It is the invoicing discipline that makes stage payments work in practice.
Why it matters
Milestone billing keeps big projects self-funding and reduces the finance a contractor must carry. See stage payment.
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