prepayment
noun[CorU]
(alsopre-payment)uk/ˌpriːˈpeɪ.mənt/us/ˌpriːˈpeɪ.mənt/anarrangementin which aserviceorproductispaidfor, orpartlypaidfor, before it is used orobtained, or theamountthat ispaid:
Theymovedinto ahomewith a prepaymentmeterforelectricity.
A pre-payment of £50 aspartof therentalcostisrequired.
finance & economicsspecialized
theactofpayingadebtbefore it isdueto bepaid, or theamountthat ispaid:
There is nopenaltyorfeefor prepayment of aloan.
Mostcontractsallowpre-payments of 10 to 20percentof thebalanceeachyearwithoutpenalty.
Synonym
prepay
- Somepetrolstationsrequireprepayment.
- People who havedifficultyinpayingfortheirwatermaypreferto have prepaymentmetersfitted.
- Prepayments canerodereturnsif theinvestorisunabletoquicklylendthemoneyagain at asimilarrate.
- Lenderschargeprepaymentpenaltiesif yousellyourhomeor refinance themortgagebefore aspecifiedtime.
Paying money
- advance
- ante up (something)
- balance
- burn a hole insomeone'spocketidiom
- chargeable
- co-finance
- compensate
- congestion charge
- cough
- foot
- lash
- pay top dollaridiom
- payer
- ransom
- settle up
- sink intosomething
- spender
- splash out(something)
- spring forsomething
- stretch tosomething
You can also find related words, phrases, and synonyms in the topics:
Borrowing & lending