2 min read
Definition
A grace period is a brief allowance — a few days, where offered — after a payment date, within which paying does not trigger a default charge or a late mark. Not all agreements include one, and it should not be relied on as routine.
Why it matters
A grace period offers a small safety margin, but treating it as normal is a sign of cash strain. The reliable defence against late payment is headroom. See missed a payment?
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