Installment Payments

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Installment payments

Distribution of plan assets to beneficiaries based upon a regular schedule.

A series of payments that a buyer makes instead of a lump sum to compensate the seller. Installment payments often, but do not always, include interest to pay the seller for accepting the credit risk that the buyer will not make payments in a timely manner. Installment payments can have tax advantages for the seller. Most importantly, they make expensive goods and services available to buyers who would not otherwise be able to afford them. See also: Credit sale.

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