Retainer

Payment Terms

An upfront fee paid to secure ongoing services, often for a set period or scope of work.

Detailed Explanation

A retainer is an advance payment made to ensure availability of services. Common in professional services (legal, consulting, creative), retainers can work different ways: some are deposits drawn against as work is performed, others are recurring fees for ongoing availability. Retainer agreements typically specify what services are included, the duration, and how unused funds are handled. Invoices under retainer arrangements may show work performed against the retainer balance.

Examples

  • A lawyer requires a $5,000 retainer before taking a case
  • A consultant works on a monthly retainer of $3,000 for 10 hours of availability

Related Terms

Recurring Invoice Deposit Payment Terms

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