What is Deferred Credit?
Deferred credit means you will not have any upfront costs. The full amount payable will only be taken from a credit/debit card after any of the following: The property has been sold Change of agent The property is taken off the market After 10 months Your estate agent will notify your HIP provider once any of the above have taken place. However, you may pay for your HIP in full at any time. Should you have any more questions, please contact our experienced sales team.
Deferred credit is revenue that has been received by a company, but remains unreported as actual income for a period of time. Frequently, deferred credit has to do with some type of compensation received as advance money for a project. Rather than recording the advance as income, the payment is listed as a deferred credit and is not recorded as income until the project is completed. One of the main advantages of using a classification of a deferred credit is that it keeps the accounting records in balance. Income is normally only related to revenue that is earned in some manner. Because the funds in a deferred credit have yet to be earned, it is difficult to account for the amount of the advance in the same manner as a payment on an outstanding invoice. Another practical reason for making use of a deferred credit classification is that the unearned revenue may have to ultimately be returned to the client. For example, if a consultant collected revenue in advance for a project but ultim
