Legal Definitions - billing cycle

Definition: The billing cycle refers to the period of time between billings for goods or services provided. It is the time frame in which a company generates invoices and sends them to customers for payment.

Example: A credit card company may have a billing cycle that runs from the 1st to the 30th of each month. During this time, the company will track all purchases made by the cardholder and generate a statement at the end of the cycle. The statement will include all purchases made during the billing cycle, as well as any fees or interest charges that may have accrued.

Another example: A utility company may have a billing cycle that runs from the 15th to the 15th of each month. During this time, the company will track the amount of electricity, gas, or water used by the customer and generate a bill at the end of the cycle. The bill will include the total amount of usage during the billing cycle, as well as any applicable taxes or fees.

These examples illustrate how a billing cycle works in different industries. The billing cycle is important for companies to keep track of their revenue and for customers to manage their expenses. By understanding the billing cycle, customers can plan their payments and avoid late fees or penalties.