prepayment

prepayment definition - business

prepayment

A payment made prior to the date it is due. For example, borrowers sometimes make an extra principal payment, or prepayment, in order to reduce the outstanding balance on their loan.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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