Definition of “sinking fund” - English Dictionary

“sinking fund” in Business English

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sinking fundnoun [ C ]

uk us

FINANCE money that a company pays into an account so that it can pay investors, lenders, etc. the money it owes them:

By paying off a portion of its debt each year with the sinking fund, the company will face a much smaller final bill.

UK PROPERTY an account into which all owners of apartments in a building make regular payments for future repairs to the building:

Make sure that the block in which you are buying a flat has a healthy sinking fund.

(Definition of “sinking fund” from the Cambridge Business English Dictionary © Cambridge University Press)

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