Down Payment

Down payment is a payment used in the context of purchasing an expensive good or service, whereby the payment is the initial upfront portion of the total amount due and is usually given in cash during the onset of the purchase.

For example, in the context of commercial real estate, if the purchase price of a property is $1,000,000 and a lender will finance $750,000, then a down payment of $250,000 would be required.

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