Definitions for "deferred payment"
Keywords:  sight, lra, drafts, future, documentary
A debt which has been incurred and will be paid back at some point in the future.
When you are borrowing to buy a car, some lenders recognise that the car will probably have a trade-in value at the end of the loan period. They will therefore let you repay some of the loan amount when you sell the car at the end of the loan period. That may enable you to buy a more expensive car, since your interest payments will be based on a smaller value than the full loan amount.
Payments put off to a future date or extended over a period of time. Interest will usually still accumulate during deferment.