Business Glossary

In general: paying an obligation before it falls due.
Finance: repayment of debt obligations before maturity, usually to save interest. If a formalized discount or rebate is involved, the term used is anticipation rate.
Mortgage instrument: when a provision allows prepayment without penalty, the mortgagee is said to have the right of anticipation.
Trade payments: bill that is paid before it is due, not discounted.

any advance payment of an obligation prior to the date payment is due, usually to save interest costs.

1. Accounting.Charges to income or future earnings before these earnings are realized.
>
2. Banking. Borrower's legal right, if allowed by a mortgage instrument, to repay the outstanding principal and interest on a loan, as when refinancing the loan at a lower rate. Also, deposit of funds for payment of an acceptance prior to the maturity date, reducing the customer's liability.