Back Load

What Does Back Load Mean?

A back load is a financial arrangement in which one party postpones payment until a specified time or a future transaction occurs. For example, it may involve paying another party a portion of the amount owed after the sale of shares or stocks.

Insuranceopedia Explains Back Load

A back load financial agreement is associated with purchasing a financial product, such as stocks or shares. This back load may take the form of a sales charge or a portion of the shares purchased. Payment for this back load is deferred based on the terms of the agreement. For instance, the sales charge might be paid after the shares are sold, or a portion of the stocks or their value may be provided after the entire stock purchase is completed.