Deferred payments refer to a financial arrangement where a buyer is allowed to postpone payment for goods or services until a later date. This can be beneficial for consumers who may not have the funds available at the time of purchase but still want to acquire the item. Common examples include installment plans and buy now, pay later services. In a deferred payment agreement, the terms usually specify when the payment is due and any interest or fees that may apply. This arrangement can help manage cash flow for both consumers and businesses, allowing for more flexible purchasing options without immediate financial strain.