To answer this question, please select “yes” if you ask customers to provide an advance payment. Advance payments are partial payments of the total purchase price that help to pay your actual expenses during the performance of a service or providing the goods to the customer. With an advance payment, the customer will have to pay the remainder of the purchase price upon the completion of the goods or services. Advanced payments are used to help pay your direct expenses (e.g. a house painter asks for an advance payment of $500.00 that will be used to purchase the paint. The customer needs to pay the remaining balance upon the house being painted).
If, on the other hand, you require the customer to pay the full purchase price to receive the goods or services and do not request customers to pay advance payments, please select “no” to this question.