Is the Holdback amount a part of the loan?
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cosette
Apprentice
Joined: 24 Dec 2005
Posts: 2
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 Posted: 02/21/09 - 09:46 Post subject: |
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| Hello there people. My name is Dianne and I would appreciate if you could explain me something about loans. I heard that some of the loans have so called Holdback amount. Can you tell me what it is? Is the Holdback amount part of the loan? Thank you for the posts. |
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cassandre
Apprentice
Joined: 03 Mar 2005
Posts: 4
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| Posted: 03/08/09 - 03:38 Post subject: |
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| Hello Dianne. Well, here’s the thing. Holdback amount is the amount which the payee holds back until the job is done. It is common thing in construction, but you can also find that as a common practice in many other areas. In case of a loan, you won’t get all the money in advance. Instead, you will leave something to be paid after a certain period. But this amount is part of the loan. |
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pincas
Apprentice
Joined: 28 Mar 2008
Posts: 4
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| Posted: 03/22/09 - 21:30 Post subject: |
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| Hello Dianne. Well, as it was said above, holdback amount is the amount of payment, or loan, which is not paid until some certain condition is fulfilled. It is mostly present in constraction with the contractors and subcontractors. In my opinion, holdback can be pretty much useful, because it can serve as additional motivation and/or the guarantee for the both involving parties. |
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