Definitions for "Prepayment"
Payment in advance.
Payment of the mortgage/loan after the lock out period but prior to due date.
Submenu Any amount paid on a loan by the borrower before it is required to be paid under the terms of the promissory note. There is never a penalty for prepaying principal or interest on federal loans.
In a set of accounts this means something which has been paid out which covers a period after the end of the accounting period. You may have paid an insurance premium for the year to 30 September. If your accounting year ends on 30 June, 3 months of your premium will be prepaid.
A Cash outlay to obtain an other asset which will have future value to the company (i.e. prepaid insurance).
A Prepayment is a type of asset arising from the fact that the business has alreasy been invoiced for the right to all or part of a service in a future period e.g. rent for next year, paid this year.
Keywords:  smm, cpr, psa, metrics, mbs
The early retirement of debt. This article discusses metrics for MBS prepayment, including SMM, CPR and PSA.
Keywords:  deferral, accounting, term
For accounting term prepayment, go to deferral.
With pensions, this is when an employer pays more contributions than the actuary has worked out are needed. The extra amount, called prepayment, is shown as an asset in the employer's accounts (rather than those of the pension fund ).
A deposit made in advance of goods or services.
A method of paying for the cost of health care services in advance of their use.