prepayment Definition
- 1the act of paying for something before it is due or before it is received
- 2an amount of money paid in advance of a debt or obligation
Using prepayment: Examples
Take a moment to familiarize yourself with how "prepayment" can be used in various situations through the following examples!
Example
The company requires a prepayment of 50% before starting the project.
Example
I made a prepayment on my mortgage to reduce the interest.
Example
The prepayment penalty for paying off the loan early was steep.
prepayment Synonyms and Antonyms
Synonyms for prepayment
- deposit
- advance payment
- up-front payment
Phrases with prepayment
a plan that allows customers to pay for goods or services in advance, often at a discounted rate
Example
The gym offers a prepayment plan for a year's membership at a lower cost.
a device that allows customers to pay for utilities such as electricity or gas in advance, often used in rental properties
Example
The landlord installed a prepayment meter for the tenant's electricity usage.
a fee charged by lenders for paying off a loan before the end of its term
Example
The borrower had to pay a prepayment penalty for paying off the car loan early.
Summary: prepayment in Brief
The term 'prepayment' [priːˈpeɪmənt] refers to paying for something before it is due or received, or an amount of money paid in advance of a debt or obligation. Examples include making a prepayment on a mortgage to reduce interest or paying a prepayment penalty for paying off a loan early. It extends into phrases like 'prepayment plan,' which allows customers to pay for goods or services in advance, and 'prepayment meter,' which allows customers to pay for utilities in advance.
