Full Repayment

Full Repayment refers to the act by which a debtor (such as an importer or buyer) repays all outstanding principal and interest (if any) to a creditor (such as an exporter, seller, or bank) in a single lump sum on or before the agreed due date. In foreign trade, it is commonly seen in scenarios involving letters of credit, open account (O/A), documentary collections (D/P, D/A), or bank financing. Use cases include: the buyer settling all outstanding amounts within a grace period; or a borrower repaying an export credit ahead of schedule. Points to note: the repayment currency, amount, channel, and fee responsibilities must be clearly specified; if installment payments are involved, full repayment may trigger a prepayment penalty or affect the credit limit. Unlike 'Partial Repayment,' full repayment terminates the debt relationship, and the seller must issue a Letter of Release. Compared with 'Installment,' full repayment typically does not involve multiple payments. Foreign trade practitioners should verify contract terms to ensure the repayment amount covers principal, interest, and possible overdue fees, avoiding being deemed in default due to underpayment.