Meaning of the word prepayment in English

What does prepayment mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

prepayment

US /ˌpriːˈpeɪ.mənt/
UK /ˌpriːˈpeɪ.mənt/

Noun

a payment made before it is due

Example:
The landlord requires a prepayment of the first and last month's rent.
Making a prepayment on your loan can save you money on interest.