Advance Renewal

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  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 FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. How difficult is it to understand business analytics?

    In the abstract, business analytics is the study of financial, economic, consumer and production data through statistical ... Read Full Answer >>
  6. At what levels are core competencies required for businesses operating in the primary ...

    Core competencies help businesses understand their best abilities to perform in the market. Primary sector businesses mine ... Read Full Answer >>
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. Economics

    What's Involved in Customer Service?

    Customer service is the part of a business tasked with enhancing customer satisfaction.
  5. Economics

    What is Involved in Inventory Management?

    Inventory management refers to the theories, functions and management skills involved in controlling an inventory.
  6. Economics

    What Does Accretive Mean?

    In the business world, accretive most often to refers to additional growth from outside sources.
  7. Economics

    Explaining Prime Cost

    Prime cost is a way of measuring the total cost of the production inputs needed to create a given output.
  8. Economics

    Explaining the Value Chain

    A model of how businesses receive raw materials as input, add value to the raw materials, and sell finished products to customers.
  9. Economics

    What is a Management Buyout?

    A management buyout, or MBO, is a transaction where a company's management team purchases the assets and operations of the business they manage.
  10. Economics

    Explaining Cash On Delivery

    Cash on delivery, also referred to as COD, is a method of shipping goods to buyers who do not have credit terms with the seller.

You May Also Like

Hot Definitions
  1. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  2. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  3. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  4. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  5. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  6. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
Trading Center