What Is A Rolling Budget

[nellypope]

I am a freelance designer and one of my clients has set me a £200 rolling budget. My understanding was was that they use my services and then I invoice when they reach the £200 mark (approximately 12 hours work). However the budget was set in September and they have so far run up 6 hours. What's the correct etiquette in this case? I'm concerned that if they don't use me again until next year I won't see any funds for the work that I have already completed. It's quite a big client, with 60 day payments terms, really want to keep them sweet. Just not sure how to progress. In the past I have charged them hourly.

[buildersmate]

A better interpretation for you, and entirely appropriate in my opinion is that the rolling budget means that you have a rolling purchase order of £200. You invoice as normal on delivery, and expect payment 60 days later, but having invoiced for some work, the purchase order commitment increases by the sum you have just invoice, to another £200 of commitment on the slate, unless they guillotine it and inform you otherwise.
It sounds like a way of their finance/ credit control department keeping tabs on local commitment made by shareholders without having to confirm a new purchase order each time.
Check with them to see if they are agreeable to that.

[buildersmate]

Not shareholders but budgetholders. *** that predictive text.