Definition, Meaning & Synonyms
prepayment
noun
/ˈpriːˌpeɪmənt/
Definition
The act of paying for goods or services in advance before they are due or before they have been delivered.
Examples
- Many lenders offer a discount for a prepayment on the loan.
- She made a prepayment on her new car to reduce her monthly installments.
- The service requires a prepayment to secure the booking.
Meaning
Prepayment refers to an arrangement where a payment is made ahead of schedule or before the actual due date. This is commonly used in financial transactions, loans, and service agreements.
Synonyms
- Advance payment
- Prepayment option
- Deposit
