Advances from clients

Advances are a good idea, when it makes sense. For example, many consulting firms require advances.

Advances are justified when you'll experience significant purchases or other expenses (like travel) on behalf of the customer in the process of the project. You shouldn't have to tie up your working capital for this.

Advances also make sense when a significant amount of work is going to be done before the first billing cycle. Finally, advances also help make sure the client is prepared to make an initial investment.