verb
- to provide funding for something before it begins or before other funding becomes available
Usage: business; finance
Examples
- The company will prefinance the construction project until the bank loan is approved.
- Investors agreed to prefinance the startup’s operations for six months.
- The government decided to prefinance the infrastructure improvements.
- They need to prefinance the equipment purchase before production can begin.
- The organization will prefinance the research study pending grant approval.
- Banks often prefinance export transactions for their corporate clients.