delayed payment Also referred to as a deferred start, this facility allows you to delay the date on which the first repayment is due The deferred period could be from one to three months, meaning a loan opened on the 1st January may not require repayments to start until 1st April
A letter of credit issued for the purchase and financing of merchandise, similar to acceptance-type letter of credit, except that it requires presentation of sight drafts payable on an installment basis
Payment a set period of time after shipment or presentation of shipping documents, as opposed to immediately or "at sight " A distinction is drawn between a letter of credit that is available for deferred payment and one that is available for acceptance of time drafts in that no drafts are involved under a deferred payment L/C Without accepted drafts, the beneficiary's ability to sell, or "discount," his right to payment to a lender or investor is restricted
Normally a small contact payment is paid to initiate the lease, and the main lease payment is deferred from one to six months The lease payment will normally be higher to reflect the loss of revenues to the lessor during the deferred period This is similar to a Step Up or Step Down lease