Disbursement

You may not necessarily come across disbursement in everyday life, so in a financial context and you see this word, what does it mean?

Well, disbursement refers to the process whereby funds are paid out to meet a debt. Often the disbursement does not necessarily cover the full debt but rather may act as a partial payment against the debt, and in general refers to money that is exchanged to reduce a debt. These payments may be made on a regular basis against a debt.

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