Deferred billing
Deferred billing delays the start of invoicing until a future date, often used during trial periods or implementation phases.
Deferred billing postpones the first invoice to a future date, giving customers time to onboard or complete a trial before charges begin. It reduces friction in the sales process and improves early adoption.
Example: A SaaS vendor offers a 30-day free onboarding period before billing starts. The billing system is set up at contract signing but the first invoice is deferred by 30 days.
