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holdback business definition
- In real estate, a portion of the purchase price or loan proceeds withheld until a specified event takes place. For example, a commercial lender might withhold part of a loan on an office building because a major tenant is continuing to work on improvements. The remainder of the loan will be released when the improvements are completed and the tenant has moved in.
- A manufacturer's financial incentive for dealers of new vehicles. The holdback is designed to compensate for a dealer's interest expense on loans used to keep new vehicles on the lot and available for sale.
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