Cycle Billing

DEFINITION of 'Cycle Billing'

The practice of billing different customers based on a scheduled cycle rather billing everyone all at once. For example, cycle billing can include sending out invoices for the largest amounts outstanding on the first of each month, followed by the smaller billing amount on the second of every month.

BREAKING DOWN 'Cycle Billing'

Cycle billing allows companies to develop a set schedule and track which customers have and have not yet been billed. Such a system often can result in decreased SG&A costs since tracking the number of outgoing invoices becomes simplified and less prone to error.