Prepayment (Noun)
Meaning
Payment in advance.
Classification
Nouns denoting acts or actions.
Examples
- The company required a prepayment of 20% of the total cost before starting the project.
- A prepayment penalty is often charged by lenders when a borrower pays off a loan too quickly.
- She made a prepayment of her rent for the next three months to avoid any late fees.
- As part of the deal, the client was asked to make a prepayment of $10,000 upfront.
- The credit card company offered a discount for customers who made a prepayment of their annual fees.