Deferred Consideration

Sale price paid in tranches over time rather than fully at closing — sellers must weigh counterparty credit risk on the unpaid portion.

Seller Example

Promoter of a Jaipur handicrafts export house selling for ₹30 Cr negotiates the deferred ₹10 Cr tranche to carry a corporate guarantee from the buyer's parent entity plus 10% p.a. interest, protecting against payment risk and value erosion from an unsecured, interest-free deferral.