Business, Legal & Accounting Glossary
A circumstance that occurs when a loan payment is less than the principal and interest due on a loan.
Any unpaid principle each month makes the accumulated interest amount bigger, which will eventually result in negative amortization.
Even though the company had a full year of negative amortization on their loans, the bank let them extend their payment deadline.
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This glossary post was last updated: 15th February, 2020 | 0 Views.