Real-World Examples
Key Principle
Advance payment establishes credit account. Development work is booked, invoiced, and delivered. Unused bookings are forfeited. Short-notice bookings consume credit at premium rates.
Advance Planning (40% Discount)
Customer books development work with 45+ days advance notice, securing maximum discount rate.
Advance Payment: £60,000 credit
Booking: 24 days at £600/day
Invoice: £14,400 (24 × £600)
Remaining Credit: £45,600
Can book 76 more days at £600 rate
Short Notice Booking (20% Discount)
Customer requires additional development work with less than 30 days notice after previous bookings.
Previous Usage: £20,000 consumed
Remaining Credit: £40,000
New Booking: 15 days at £800/day
Invoice: £12,000 (15 × £800)
Remaining Credit: £28,000