Small Business Buying/Selling Term - 'Amortize'

Small Business Buying/Selling Term Definition


AMORTIZE is the gradual process of writing off the cost of an asset, or paying off a liability by means of a sinking fund, over a period of time.

The period of time over which the loan will be amortized, usually expressed in months.
To write off an expenditure for (office equipment, for example) by prorating over a certain period.