Advance payment

Payments made to the insured by the insurance company before the settlement date. For example, a claim is scheduled to be settled on June 1, 2000, but the insurance company pays the claimant prior to that date.

An advance payment, or simply an advance, is the part of a contractually due sum that is paid in advance for goods or services, while the balance included in the invoice will only follow the delivery. It is called a prepaid expense in accrual accounting.

See also

• Advance against royalties
• Pay or play contract
• Signing bonus
• Prepaid expense

External links

• Dictionary of Small Business definition: "advance payment"

This economics or finance-related article is a stub. You can help Wikipedia by expanding it. v • d • e

This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)