outstanding invoice
Definition
An outstanding invoice is a bill you sent to a customer that they have not yet paid. The payment due date may have already passed, or the customer might still have time left to pay depending on your agreed terms.
Example
You completed a website design for a client in March, sent them an invoice for $2,000, and it is now April with no payment received, so that invoice is considered outstanding.
Watch Out
Letting outstanding invoices pile up without following up can seriously hurt your cash flow, so track them closely and send reminders before they become overdue.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.