Retainer Fee


DEFINITION of 'Retainer Fee'

An upfront cost incurred by an individual in order to ensure the services of a consultant, freelancer, etc. A retainer fee is paid most commonly to individual third-parties who have been engaged by the payer to perform a service for them or on their behalf. These fees are almost always paid upfront and only ensure the commitment of the receiver, but does not guarantee an outcome or final product.

BREAKING DOWN 'Retainer Fee'

The most common form of retainer fees apply to lawyers, who in most cases require those seeking services to provide an upfront retainer fee, for example $500. As mentioned however, this retainer fee only ensures that services will be rendered and does not equate to other hourly or trial fees which the lawyer or firm may charge during the course of a trial or court proceedings.

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  1. How do financial advisors charge fees?

    The ways in which financial advisors can claim a piece of the pie may leave your head spinning. Financial advisors can charge ... Read Full Answer >>
  2. Do dividends affect working capital?

    Regardless of whether cash dividends are paid or accrued, a company's working capital is reduced. When cash dividends are ... Read Full Answer >>
  3. Do prepayments provide working capital?

    Prepayments, or prepaid expenses, are typically included in the current assets on a company's balance sheet, as they represent ... Read Full Answer >>
  4. Does working capital include salaries?

    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>
  5. What is a profit and loss (P&L) statement and why do companies publish them?

    A profit and loss (P&L) statement, or balance sheet, is essentially a snapshot of a company's financial activity for ... Read Full Answer >>
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