{"id":10542,"date":"2022-12-24T23:33:30","date_gmt":"2022-12-24T18:03:30","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=10542"},"modified":"2025-03-25T15:14:20","modified_gmt":"2025-03-25T09:44:20","slug":"what-is-an-invoice","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/","title":{"rendered":"What is an Invoice? (+Free Samples &#038; Templates)"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If you\u2019ve ever worked in a startup, you\u2019ve probably dealt with some kind of vendor providing their services. Once the services are complete, an <a href=\"https:\/\/razorpay.com\/blog\/what-is-invoice\/\">invoice<\/a> is issued after which the <\/span><a href=\"https:\/\/razorpay.com\/x\/vendor-payments\/?r=blog_cta_WhatisanInvoice\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><span style=\"font-weight: 400;\">vendor payment<\/span><\/a><span style=\"font-weight: 400;\"> is made.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Not just startups, businesses of all sizes at some point use vendors for getting specialised services or goods. It could be the food vendor that provides meals in your office cafeteria or a social media agency helping you with creative stuff. This blog post covers invoices in detail along with a free, completely editable template that you can use.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69ea7c482b2f9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69ea7c482b2f9\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#What_is_an_invoice\" >What is an invoice?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Different_parts_of_an_invoice\" >Different parts of an invoice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Why_is_an_invoice_important\" >Why is an invoice important?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Different_types_of_invoices\" >Different types of invoices<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Pro_Forma_Invoices\" >Pro Forma Invoices<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Commercial_Invoice\" >Commercial Invoice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Credit_Invoice\" >Credit Invoice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Timesheet_Invoice\" >Timesheet Invoice\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Retainer_Invoice\" >Retainer Invoice\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Recurring_Invoices\" >Recurring Invoices<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Interim_Invoice\" >Interim Invoice\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Past_Due_Invoice\" >Past Due Invoice\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Purchase_Invoice\" >Purchase Invoice<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Important_things_to_note_while_generating_an_invoice\" >Important things to note while generating an invoice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Automate_everything_related_to_invoice_payments_with_RazorpayX_Vendor_Payments\" >Automate everything related to invoice payments with RazorpayX Vendor Payments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#FAQs\" >FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#How_many_billing_addresses_for_a_customer_can_be_utilised_in_an_invoice\" >How many billing addresses for a customer can be utilised in an invoice?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#What_is_the_difference_between_an_invoice_and_a_receipt\" >What is the difference between an invoice and a receipt?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Why_should_a_business_raise_an_invoice\" >Why should a business raise an invoice?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-an-invoice\/#Why_do_MSMEs_opt_for_invoice_financing\" >Why do MSMEs opt for invoice financing?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_an_invoice\"><\/span><b>What is an invoice?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">An invoice is a legally binding document\/contract between a buyer and a seller, raised after the seller has provided a product or a service to the buyer. Among other details, this statement contains the amount payable and other terms associated with this transaction.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The next section covers all the details of invoicing such as information contained in an invoice, the importance of invoicing and different <a href=\"https:\/\/razorpay.com\/blog\/types-of-invoices\/\">types of invoices<\/a>.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Different_parts_of_an_invoice\"><\/span><b>Different parts of an invoice<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Please find below a sample invoice with its various parts listed on the left-hand side:<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10544 size-large\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2022\/12\/Facebook-post-1-1-1024x1024.png\" alt=\"what is an invoice\" width=\"1024\" height=\"1024\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2022\/12\/Facebook-post-1-1-1024x1024.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2022\/12\/Facebook-post-1-1-300x300.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2022\/12\/Facebook-post-1-1-150x150.png 150w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2022\/12\/Facebook-post-1-1-768x768.png 768w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2022\/12\/Facebook-post-1-1-370x370.png 370w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2022\/12\/Facebook-post-1-1.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2022\/12\/Invoice-Template_Excel.xlsx\" target=\"_blank\" rel=\"noopener nofollow\" data-schema-attribute=\"\">Download invoice template in Excel for free<\/a><\/p>\n<p><span style=\"font-weight: 400;\">Vendor <a href=\"https:\/\/razorpay.com\/blog\/different-types-of-payment-methods\/\">payment methods<\/a> for invoices can range from cash to electronic bank transfers or payoff via mobile apps. Usually, the payments are done online these days.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_is_an_invoice_important\"><\/span><b>Why is an invoice important?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The primary function of an invoice is to ensure that both seller and buyer remain contractually obligated to uphold the terms of a deal. However, keeping such detailed documentation is also crucial because:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It keeps a thorough record of which services or products had been provided by which entity to whom<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This record can safeguard both parties involved from facing any duplicitous litigation down the line<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">When filing taxes, these invoices benefit businesses by substantiating revenue earned<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A business can analyse the behavioural pattern of its customers from the data recorded in an invoice. This way, they can determine which service or product a certain demographic has opted for the most. Consequently, targeted, personalised advertisements can become a possibility.\u00a0\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MSMEs can leverage accounts receivables to avail alternative financing via <a href=\"https:\/\/razorpay.com\/blog\/invoice-factoring\/\">invoice factoring<\/a> or discounting<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">[<\/span><a href=\"https:\/\/razorpay.com\/blog\/business-banking\/invoice-processing\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><span style=\"font-weight: 400;\">Suggested Read: Invoice Processing 101: What is Invoice Processing And More<\/span><\/a><span style=\"font-weight: 400;\">]<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Different_types_of_invoices\"><\/span><b>Different types of invoices<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Sales Invoices<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Some of the most commonly used invoice types include:\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Pro_Forma_Invoices\"><\/span><b>Pro Forma Invoices<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">These bills are preliminary bills generated to establish that a seller will deliver products or services as per prearranged terms against a mutually decided price. This can be generated before the actual delivery of products or services.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Commercial_Invoice\"><\/span><b>Commercial Invoice<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This type of invoice is generated when a seller exports its goods to a buyer overseas. Therefore, <a href=\"https:\/\/razorpay.com\/blog\/what-is-a-commercial-invoice\/\">commercial invoices<\/a> function as export documents for customs declaration about cross-border transactions.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Credit_Invoice\"><\/span><b>Credit Invoice<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A credit invoice is raised when there is any dispute about the terms of a transaction between a buyer and a seller. For instance, if there had been any error in the invoice from the buyer&#8217;s end or if the buyer returns a product and demands a refund, this documentation becomes necessary.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Timesheet_Invoice\"><\/span><b>Timesheet Invoice\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In a timesheet invoice, a customer is charged hourly depending on the working hours of the service provider&#8217;s employees.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Retainer_Invoice\"><\/span><b>Retainer Invoice\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This type of invoice is raised when a business receives an advanced payment from its customer regarding a product or service. So, this bill keeps a record of the money paid off beforehand. Subsequently, when the buyer is charged with the total invoice amount, the seller will deduct the amount received previously.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Recurring_Invoices\"><\/span><b>Recurring Invoices<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A business issues <a href=\"https:\/\/razorpay.com\/blog\/what-is-recurring-invoices\/\">recurring invoices<\/a> to a specific client against the same products or services availed for the same amount. Subscriptions, service contracts, or proceedings related to a lease come under this.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Interim_Invoice\"><\/span><b>Interim Invoice\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If a hefty amount is paid, a business may break that sum into multiple small remittances. In such a scenario, interim invoices are raised. These are generally used when charging a client for a comparatively bigger project, where each interim invoice is paid off throughout the partial completion of the job.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Past_Due_Invoice\"><\/span><b>Past Due Invoice\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Such an invoice is generated when a buyer fails to meet the payment deadlines of the original invoice.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Purchase_Invoice\"><\/span><b>Purchase Invoice<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">\u00a0A purchase invoice is also given by the seller to the buyer but at the end of the transaction once the goods and services have been purchased. While all the above sales invoices deal with containing the quantities, items, unit rate, etc. for the services, the purchase invoice deals with the confirmation that the transaction is complete.\u00a0<\/span><\/p>\n<p>Related Read: <a href=\"https:\/\/razorpay.com\/blog\/difference-between-invoice-and-bill\/\">What is the Difference Between Invoice and Bill?<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Important_things_to_note_while_generating_an_invoice\"><\/span><b>Important things to note while generating an invoice<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As it raises an invoice, a company should follow some basic guidelines such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The terms of payment should always be in writing\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automation can be the ideal way forward for invoice-related activities\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If sellers are making advance payments, they should be incentivised. This way, an organisation can build a more amicable relationship with its customers.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The invoice payment procedure should be free of any inconvenience for the end user. An improved customer experience can increase the seller&#8217;s ability to client retention.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you deal with generating invoices and doing vendor payments regularly, you should check out <a href=\"https:\/\/razorpay.com\/x\/vendor-payments\/?r=blog_cta_WhatisanInvoice\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">RazorpayX Vendor Payments<\/a> software.<\/span><\/p>\n<p style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/vendor-payments\/?r=blog_cta_WhatisanInvoice\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Explore RazorpayX Vendor Payments<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Automate_everything_related_to_invoice_payments_with_RazorpayX_Vendor_Payments\"><\/span><b>Automate everything related to invoice payments with RazorpayX Vendor Payments<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Some of the features of <\/span><span style=\"font-weight: 400;\">RazorpayX<\/span><span style=\"font-weight: 400;\"> V<\/span><span style=\"font-weight: 400;\">endor Payment<\/span><span style=\"font-weight: 400;\">s include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">One-click pay for an invoice generated<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Invoice details are auto-captured with intelligent OCR, saving you manual data entry<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The platform also conducts TDS-related transactions for an invoice<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Easy <a href=\"https:\/\/razorpay.com\/blog\/what-is-invoice-management\/\">invoice management<\/a> through various methods such as &#8211; forwarding invoices via email, letting vendors add invoices directly using a vendor portal, importing invoices from accounting tools you use<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Seamless auto-reconciliation<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/x.razorpay.com\/auth\/signup?r=blog_cta_WhatisanInvoice\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Sign up in 2 easy steps!<\/a><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, you have to simply add the TDS category to your vendors and it auto-calculates, deducts and pays TDS for every invoice.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don\u2019t believe us? Hear what Chetan Mahajan, Founder and CEO of The Mavericks India has to say about RazorpayX Vendor Payments:<\/span><\/p>\n<blockquote><p><b>We now receive all invoices directly on the dashboard, and they are ready with details pre-filled. It takes just a few clicks to stay on top of our vendor payments.<\/b><\/p><\/blockquote>\n<p style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/x.razorpay.com\/auth\/signup?r=blog_cta_WhatisanInvoice\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Take it for a free spin!<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div id=\"rank-math-rich-snippet-wrapper\"><div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-1\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"How_many_billing_addresses_for_a_customer_can_be_utilised_in_an_invoice\"><\/span>How many billing addresses for a customer can be utilised in an invoice?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>For a single customer ID, a business can add a maximum of three billing addresses.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-2\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_an_invoice_and_a_receipt\"><\/span>What is the difference between an invoice and a receipt?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>An invoice is a formal payment request, whereas the receipt is legal proof of that payment.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-3\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Why_should_a_business_raise_an_invoice\"><\/span>Why should a business raise an invoice?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>An invoice can be a legal tool for businesses to enforce an agreement which prevents the scope of delinquencies on the part of a buyer. Please read the blog post for more details.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-4\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Why_do_MSMEs_opt_for_invoice_financing\"><\/span>Why do MSMEs opt for invoice financing?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>As small businesses lack collateral and asset, traditional financiers may deem them, high-risk borrowers. So, they can use unpaid invoices as collateral for fundraising. <\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>An invoice is a crucial aspect of bookkeeping for a business. Read this blog post to know what is an invoice and get free editable templates for your business.<\/p>\n","protected":false},"author":79,"featured_media":10543,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[27],"tags":[391,392],"class_list":{"0":"post-10542","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business-banking","8":"tag-vendor-payments","9":"tag-what-is-an-invoice"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/10542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/79"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=10542"}],"version-history":[{"count":10,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/10542\/revisions"}],"predecessor-version":[{"id":21683,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/10542\/revisions\/21683"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/10543"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=10542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=10542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=10542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}