- Payback
- The length of time it takes to recover the initial cost of a project, without regard to the time value of money. The New York Times Financial Glossary
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1. FINANCE the money or rewards gained from a new business, project etc:• One hurdle that often trips new entrepreneurs is the amount of time invested in a start-up before realizing any payback.
• It is a solid project that will generate hard currency with a fairly short payback period (= the period of time needed to get back the cost of an investment ) .
2. FINANCE LAW an illegal payment by a financial institution to an investor to replace money they have lost:• Executives were worried that the credit transfer would look like payback.
• The payback deals might never have come to light had local tax officials not leaked the schemes to the press.
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The number of years needed for an investment project to recover its cost.* * *
payback UK US /ˈpeɪbæk/ noun [C or U]► FINANCE the profit received from an investment or the time that it takes to receive the same amount that was invested: »Shareholders are awaiting a cash payback from the deal.
a payback on sth »You should have a 20-year payback on your investment in solar panels.
► an advantage that you get from something: payback for sth »The payback for reorganization should be increased productivity.
Financial and business terms. 2012.
