Prepayment

usgb/ˌpriːˈpeɪmənt/
noun

Payment made before a service or good is received or used.

The supplier offers a discount for prepayment of the next batch of goods.
Visual representation of "prepayment" - Payment made before a service or good is received or used.

Often appears as...

  • make a prepayment
  • prepayment for goods
Definition 1 of 3
Visual representation of "prepayment"
LampPro Tip 1/3

Discount Benefit

Prepayment can sometimes lead to financial benefits, like discounts.

Illustration for Discount Benefit
I got a 5% discount for prepayment of my magazine subscription.
LampPro Tip 2/3

Trust Implication

Prepayment signals trust in the provider and willingness to commit.

Illustration for Trust Implication
By making a prepayment, we're showing our trust in their services.
LampPro Tip 3/3

Budget Management

Prepayment can help with budgeting by paying for future expenses now.

Illustration for Budget Management
We did a prepayment for the venue to budget our event expenses better.
Visual representation of the word "Prepayment"

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