Primary navigation:

QFINANCE Quick Links
QFINANCE Topics
QFINANCE Reference
Ask the QFINANCE expert Add the QFINANCE search widget to your website

Home > QFINANCE Dictionary > Definition of down payment

Finance and Business Dictionary

Definition of "down payment"

Finance

partial payment at time of purchase a part of the full price of something paid at the time it is bought, with the remaining part to be paid later

Recommended Further Reading (Term count)

  • Islamic Modes of Finance and the Role of Sukuk
    by Abdel-Rahman Yousri Ahmad
    Broadly speaking, Islamic modes of finance can be divided into two types: Either they provide direct finance as capital funds through partnership (musharaka and mudaraba) or they provide indirect finance through leasing (ijarah) and sale contracts (murabaha, bai ajil, salam, and istisna). All modes are based on the principle of riba (interest) prohibition, and all seek to maintain Islamic business ethics (freedom and leniency of transactions,...
  • Securitization: Understanding the Risks and Rewards
    by Tarun Sabarwal
    In broad terms, securitization can be viewed as pooling receivables and selling claims to these receivables in capital markets. For example, a mortgage lender may pool together thousands of mortgages and sell claims on mortgage receivables to investors. Historically, the first securitizations in the 1970s in the United States were those of pools of mortgages. With the success of mortgage-backed securities, other groups of receivables were...

Related Articles

  • Payment Factories: How to Streamline Financial Flows

    Best Practice

    The result is that a company can reduce its bank accounts throughout the world from hundreds down to just a few, although it is worth noting that most corporations will rarely consolidate all global payments to a single bank partner as they do not want to be exposed to a single dominant bank
    By Chris Skinner

  • Accounting for Share-Based Payments under IFRS

    Best Practice

    Share-based payments are often made to employees for the purpose of incentivizing them to remain with a company or to improve their standard of performance and, thus, may be granted subject to certain conditions. IFRS 2, Share-based Payment, analyzes in detail the types of condition that might
    By Shân Kennedy

More

Definitions of ’down payment’ and meaning of ’down payment’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’down payment’ and other financial terms with our online QFINANCE Financial Dictionary.

Back to top

Related

Most Viewed

Recommended

Latest

 
QFINANCE www.qfinance.com