Arrears balance meaning. One such important term is “arrears. Arrears In finance, arrears (or arrearage) is a legal term for the part of a debt that is overdue after missing one or more required payments. Arrears can lead to liquidity challenges and potential negative consequences for both parties. Financial records or systems are essential for tracking the accumulation of unpaid obligations, such as loans, rent, salaries, dividends, and other legal obligations. Over time, its usage expanded to describe overdue payments or debts in financial contexts. This term applies to money that is due but remains unpaid, indicating a state of being behind on a required payment. An amount can be in arrears, meaning it’s late or overdue, or paid in arrears, meaning it was promptly paid after a service was provided. Dec 29, 2024 ยท History and Origin The word arrears originates from the Middle English arrear, which is derived from the Old French arriere (meaning “behind” or “in the rear”). Understanding arrears is an important part of managing your business cash flow. The word has retained this meaning in Legal Terms Dictionary arrear - Meaning in Law and Legal Documents, Examples and FAQs An arrear is money that someone owes because they haven't paid a bill or debt on time, often referred to as back payment. fnhs agn3 s5vn jogb yeqcv bawk fwuy 1jlv c5a wlgp