Definition, Meaning & Synonyms
prepayment
noun
/priːˈpeɪmənt/
Definition
The act of paying for a service or product in advance before it is delivered or used.
Examples
- Many companies offer discounts for prepayment of services.
- A mortgage may require a prepayment penalty if you pay it off early.
- The prepayment of the subscription ensured uninterrupted access to the service.
Meaning
Prepayment refers to the early payment of a debt or obligation, before the due date associated with that payment.
Synonyms
- Advance payment
- Pre-paid
- Upfront payment
