Meaning & use
prepayment
Last updated
A payment made before it is due, or before goods or services are received.
See it in a sentence
The landlord required a prepayment of two months' rent.
Some mortgages charge a penalty for prepayment of the loan.
A note on using this word
In lending, 'prepayment' can trigger fees, since it reduces the interest the lender would otherwise collect.
Words with a similar meaning
advance paymentdeposit
Choose a synonym to suit the sentence. Meanings can overlap without being identical.
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