Definition A rarely used practice of completing the exchange of cash or securities prior to the prescribed settlement date for the purpose of securing an earlier record date. When used, it can sometim [..]

The process of repaying a loan or debt earlier than the agreed repayment term. Some lenders apply early settlement or early repayment charges to offset any lost interest charges. Endowment policy

if you want to sell your car or pay off the finance before the end date of the finance agreement

If you want to sell your car or pay off the finance before the end date of the finance agreement, this is called an early settlement. Settling the agreement early will usually save you money overall, as you pay less interest on your borrowing.

Settle in full the balance due under the hire purchase agreement earlier than the date originally agreed upon.