Evergreen Retainer

What is an evergreen retainer?

An evergreen retainer is a prepayment that automatically replenishes when drawn down to a specified level. Rather than requiring clients to make new retainer deposits periodically, the agreement authorizes billing their payment method whenever the retainer falls below the threshold. Evergreen retainers ensure continuous funding while reducing administrative burden for both the firm and client.

How evergreen retainers work

The client makes an initial retainer deposit. As fees accrue, you draw against the retainer. When the balance drops below the trigger point, the client's credit card or bank account is automatically charged to restore the retainer to its original level. The engagement letter must clearly authorize this arrangement. Some clients prefer the automation; others want more control over payments.

Setting up evergreen arrangements

Define the initial retainer amount, the replenishment trigger level, and the payment method in your engagement letter. Get explicit authorization for automatic charges. Monitor client communication when replenishment charges occur. Address payment failures promptly. Evergreen arrangements work best with clients who have ongoing needs and reliable payment sources. For sporadic work, traditional retainers may be simpler.