Advance Renewal


DEFINITION of 'Advance Renewal'

Renewal of an agreement prior to its expiry. The agreement may refer to any business arrangement between two entities, from magazine subscriptions and mining claims to internet domains and product licenses. Advance renewal generally offers some inducement to the consumer to renew early, and is usually on the same terms and conditions as the initial agreement. A substantial number of advance renewals may indicate a high degree of customer loyalty.

BREAKING DOWN 'Advance Renewal'

Advance renewal benefits both the buyer and the seller of the product or service. The buyer benefits from uninterrupted supply without any disruption, while the seller benefits from the knowledge that demand for the product or service, as well as the income stream from the customer, is more predictable.

  1. Advance Canvass

    A technique used by companies to generate "buzz" in advance of ...
  2. Bargain Renewal Option

    A clause in a lease agreement that gives the lessee the option ...
  3. Renewal Option

    A clause in a lease that outlines the terms for renewing or extending ...
  4. Conversion Privilege

    An insurance policy in which the insurer is required to renew ...
  5. Renewable Term

    A clause in a term insurance contract that allows the beneficiary ...
  6. Guaranteed Renewable Policy

    An insurance policy feature that obligates the insurer to continue ...
Related Articles
  1. Savings

    Is Your Financial Situation Sustainable And Renewable?

    Ensuring long-term financial security takes planning and foresight.
  2. Options & Futures

    Peak Oil: Problems And Possibilities

    Learn a little more about the "non" part of this nonrenewable resource.
  3. Options & Futures

    How Your Annuity Company Determines Renewal Rates

    Find the firm that's right for you by uncovering how it makes its investment choices.
  4. Investing Basics

    Should You Get A Six Sigma Black Belt? Average Salary: 98K

    Interested in the Six Sigma Black Belt but unsure whether you need one? Here's a guide to it and how it differs from other belts.
  5. Investing Basics

    What is Equity?

    Think of equity as ownership in any asset after all debts stemming from that asset are paid.
  6. Economics

    What's a Horizontal Merger?

    A horizontal merger occurs when companies within the same industry merge.
  7. Economics

    Explaining Quality Control

    Businesses use quality control to ensure their products and services meet a certain standard, as well as any industry regulations.
  8. Professionals

    What is Backward Integration?

    What is backward integration, and how can it affect industries?
  9. Economics

    How a Monopoly Works

    In economics, a monopoly occurs when one company is the sole (or nearly sole) provider of a good or service within an industry. This potentially allows that company to become powerful enough ...
  10. Taxes

    Which Receipts Save Big Money at Tax Time

    Don't wait to April 13th to set up a smart receipt-filing system. These 7 categories could save you some significant money.
  1. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
  2. Does working capital include inventory?

    A company's working capital includes inventory, and increases in inventory make working capital increase. Working capital ... Read Full Answer >>
  3. How can I calculate funds from operation in Excel?

    In general, the terms "work in progress" and "work in process" are used interchangeably to refer to products midway through ... Read Full Answer >>
  4. When does Q4 start and finish?

    Most companies such as Facebook have financial years that end on December 31st. For these companies, the fourth quarter begins ... Read Full Answer >>
  5. When is it useful to look at a company's fixed asset turnover ratio?

    It is useful to look at a company's fixed asset turnover ratio when an outside observer, such as an investor, wants to know ... Read Full Answer >>
  6. What is the difference between perfect and imperfect competition?

    Perfect competition is a microeconomics concept that describes a market structure controlled entirely by market forces. In ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Bar Chart

    A style of chart used by some technical analysts, on which, as illustrated below, the top of the vertical line indicates ...
  2. Bullish Engulfing Pattern

    A chart pattern that forms when a small black candlestick is followed by a large white candlestick that completely eclipses ...
  3. Cyber Monday

    An expression used in online retailing to describe the Monday following U.S. Thanksgiving weekend. Cyber Monday is generally ...
  4. Take A Bath

    A slang term referring to the situation of an investor who has experienced a large loss from an investment or speculative ...
Trading Center