The payment of all or part of a debt prior to its due date.

Use prepayment in a sentence

You may want to ask for some prepayment if you do not have any past dealings with a new client.

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Grandma was dying of cancer and decided to make an arrangement with a local funeral director by providing a prepayment.

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She would have paid off the loan a lot sooner, but the bank had included a fee for prepayment and she didn't want to have to pay extra just to be rid of it.

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conditional prepayment rate (CPR) fictitious asset