Up front charges can be defined as the payment, which is usually of value, like cash made at the signing of a contract. Examples may include closing costs, licensing fees, down payment, etc. Payment of up front charges is usually followed by series of installment payments. It can also be called an "advance fee."
Up front charges can also be explained as the fee paid before the service is performed or goods delivered. Up front charges are usually fixed percentage of the total cost of the asset or services to be delivered. A building contractor can be asked to complete the renovation of a building and is paid 20% of his total fees as an up front before the commencement of the work while the remaining is to paid after the completion of the work.