Prepayment/ˌpriːˈpeɪmənt/ Definition 1 of 3Pro Tip 1/3Discount Benefit Prepayment can sometimes lead to financial benefits, like discounts. I got a 5% discount for prepayment of my magazine subscription. Pro Tip 2/3Trust Implication Prepayment signals trust in the provider and willingness to commit. By making a prepayment, we're showing our trust in their services. Pro Tip 3/3Budget Management Prepayment can help with budgeting by paying for future expenses now. We did a prepayment for the venue to budget our event expenses better.