Definition of Waterfall payment:
Surprisingly, the payment structure requires parent lenders to receive interest and basic payments, while subsidiary lenders receive actual payments after matrix lenders make full payments. Borrowers often make these plans in installments so that the first equity loan is preferred, as it is also likely to be the most expensive.
Debt repayment plans in accordance with agreements made by borrowing organizations that prefer to repay to more than one lender based on the size or value of the loan. By paying a lower interest rate on cheaper loans, borrowers will reduce their debts to eliminate more expensive loans with higher principal payments.
Imagine a waterfall from a vertical cube. Water means money and buckets for believers. The water fills the bucket first. The second bucket is not filled until the first. As the water receded, more buckets filled up in the order in which they appeared.
How to use Waterfall payment in a sentence?
- Surprise payments can be made so that one loan at a time or all debts are repaid permanently.
- Low lenders get interest only until high lenders make full payments. .
- The multi-level payment structure allows large lenders to obtain principal and interest before subordinate lenders.
Meaning of Waterfall payment & Waterfall payment Definition