1. payment made in advance for goods or services to be received later

Examples

• The hotel requires prepayment for all reservations.
• She made a prepayment on her car loan to reduce the interest.
• The contractor requested prepayment for materials before starting work.
• Prepayment of tuition is due before the semester begins.
• The insurance company offers a discount for annual prepayment.
• His prepayment of the mortgage saved him thousands in interest charges.