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Definition

Prepayment

Prepayment is paying for goods at the time the order is placed and prior to receipt of the goods.

When prepaying, the importer carries all the risk. They are placing implicit faith in the supplier to fulfil the terms of the contract.


Prepayment is the payment of the principal amount of a loan ahead of the scheduled date.

Webster Dictionary Meaning

1. Prepayment
- Payment in advance.
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