prepayment (B2)

noun

Pronunciation: /priːˈpeɪmənt/

Definition

Payment made in advance of receiving goods or services.

Examples

• The contract requires a small prepayment to secure the reservation for the venue.

• Many utility companies offer a discount if you choose the prepayment option for your monthly bill.

• The bank penalized the borrower for making a large prepayment on the mortgage before the agreed date.

Synonyms of prepayment

Words with a similar meaning to prepayment:

• deposit
• advance
• down payment
• remittance

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