It's common to see deferred revenue/unearned revenue on a companies balance sheet but it is worth digging into what comprises this line item. It's technically a liability since the company is not yet allowed to recognize the revenue, but they have collected the cash. With the cash in hand the company now has flexibility on how to maximize their financial position.

Some famed examples of collecting cash up include insurance companies, airlines, enterprise software, and memberships like your local gym, Amazon prime, or Costco.

The smart phone has enabled companies to develop products that make customers lives easier while allowing the company to have more cash on hand. $SBUX customers pre-load their digital wallets effectively granting Starbucks an interest free loan & $MTN has customers pay for their full season pass months in advance of ski season.

I am wondering what companies are poised to increased their deferred revenue moving forward. What other businesses can devise methods to collect cash up front from their customers?