A down payment is the amount that being paid first at the beginning of any business transaction and settle the remaining payment through installments. This payment is made so that the buyer or customer can own the goods being sold or for the case of ordering in a factory (for highly-customized goods), the goods can be put into the production line and start to be produced first.
How much a customer needs to pay for the down payment is different in each country and each business type. The amount of down payment and the remaining payment are usually agreed upon at the time of making the purchase or order.
References[change | change source]
- Campisi, Natalie. "What Is A Down Payment On A Home? - Bankrate.com". Bankrate.