Prepayment

Pronunciation: /priːˈpeɪmənt/

Prepayment (noun)

  1. Money paid in advance for goods or services that will be provided later.
  2. A payment made before work starts, often required by a contract or agreement.
  3. Money paid early to end or reduce a loan balance before the scheduled date.

Examples

  • The customer made prepayment before the service started.
  • Prepayment is required before the repair begins.