Deferred Payment. A payment postponed to a later date is typically agreed upon between the lender and borrower.

Loan Payment Deferral: A small business owner struggling with cash flow due to seasonal downturns negotiates with their bank to defer loan payments for three months. The bank agrees, allowing the owner to resume payments later without penalties, thus providing temporary financial relief.

Invoice Payment Deferral: A manufacturing company agrees to a deferred payment arrangement with a supplier. Instead of paying immediately upon receipt of goods, the company arranges to pay 60 days later to align with their cash flow cycle. This agreement benefits both parties, enabling the manufacturer to manage finances while securing supplies.

Deferred Mortgage Payment: During an economic downturn, a homeowner facing temporary financial hardship negotiates with their mortgage lender to defer monthly payments for six months. The deferred amount will be added to the end of the loan term, allowing the homeowner to catch up once their situation improves.

Deferred Rent Payment: A retail store hit hard by the pandemic arranged with its landlord to defer rent payments for several months. The landlord agreed to allow the deferred rent, expecting the tenant to catch up once business conditions stabilized.