Definition of Prepayment:

Payment refers to the settlement of an account or the payment of a service or product before the due date. Insurance can be prepaid with payment of premium before the commencement of insurance.

It is also known as prep.

Prepayment definition is: Payment is an accounting term for the settlement of a loan or debt installments before government maturity. Payments are invoices, operating expenses or non-operating expenses payments that settle the account before the due date. Payment is an action taken by an individual, company or any other type of organization.

Repay the loan before maturity. See prepaid questions.