Prepayment Meaning in English
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Definition
A prepayment is when you pay for something before it is due or before receiving the product or service. It is commonly used for loans, rent, or services.
Usage & Nuances
"Prepayment" is often formal and used in business, finance, or contracts. Common phrases: "prepayment penalty" (extra fee for early loan repayment), "make a prepayment", and "prepayment required" in service agreements. Don't confuse with "down payment" (initial part of a total payment).
Example Sentences
Your prepayment will be deducted from the final bill.
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We offer a discount if you make a prepayment.
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Some loans have a prepayment penalty if you pay them off early.
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I made a prepayment for my new phone.
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The hotel requires prepayment for reservations.
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My landlord agreed to accept a six-month prepayment instead of monthly rent.
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