Reading up on things a bit more, wouldn't a blanket purchase order make more sense? The rationale behind this is that the billing cycles might be monthly, but not necessarily 100% of the time. And the monetary amounts wouldn't always be exactly the same each time. In my example I posted, with $100K committed to purchase advertising from iHeartRadio, we might purchase a big block of it in advance of Valentine's Day. So let's say we are invoiced $25K for February. Then we don't purchase anything from them for a few months. Let's say we get invoiced $25K in May for a Mother's Day ad campaign. And then we have our largest Christmas Holiday ad campaign heading into December. So we are invoiced $50K in December.
Then again we might have some vendors with regular invoice dates and amounts. Let's say we rent billboards and agree to pay Clear Channel $120K each year. We are billed out exactly $10K a month every month. Know what I'm getting at?
