Definition

1. Noun:
   • An amount of money paid before it is due, or before a service is received: A "prepayment" is the act of paying for something, or the money itself, before the normal or agreed time of payment. It often refers to settling a debt or obligation in advance.

Usage

• "Prepayment" is typically used in financial, contractual, and commercial contexts. It refers to money paid ahead of schedule.
• It can be a countable noun (referring to a specific sum) or an uncountable noun (referring to the general concept).
• Common collocations include: , , .

Examples

• The landlord requested a prepayment of three months' rent before we could move in.
• Some loans have a prepayment penalty if you pay off the balance early.
• The invoice clearly states that prepayment is required for all custom orders.

Advanced Usage

• "Prepayment risk": In finance, this is the risk that a borrower will repay a loan earlier than scheduled, which can affect the lender's expected interest income.
• "Prepayment meter": A device, often for utilities like electricity or gas, that requires users to pay for energy before they use it by adding credit.

Variants and Related Words

• Prepay (verb): To pay for something before it is due or before you receive it.
  • You must prepay the shipping fees.
• Prepaid (adjective): Describing something paid for in advance.
  • I bought a prepaid phone card.

Synonyms

• Advance payment: A payment made before a due date or before goods/services are delivered.
• Deposit: A sum paid as a first installment to secure a transaction (can be similar but often implies a partial payment, not the full amount).

Antonyms

• Arrears: Money that is owed and should have been paid earlier.
• Deferred payment: Payment that is postponed to a later date.

Noun

1. payment in advance