Simple definition
Payment made before goods or services are fully delivered.
Payment
What Does Advance Payment Mean?
Payment made before goods or services are fully delivered.
Example in a contract
A contract may use “advance payment” when describing payment made before goods or services are fully delivered.
What advance payment means in a contract
This term commonly appears in fees, invoicing, taxes, refunds, interest, late-payment, or reimbursement provisions.
Why it may matter
It can affect cash flow, timing, additional charges, and the consequences of delayed or disputed payment. Review the exact language rather than relying on the label alone.
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FAQ
Questions about advance payment.
What does advance payment mean in plain English?+
Payment made before goods or services are fully delivered.
Where might advance payment appear in a contract?+
This term commonly appears in fees, invoicing, taxes, refunds, interest, late-payment, or reimbursement provisions.
Is this definition legal advice?+
No. ClauseInsight provides concise informational explanations. The legal effect of a term depends on the complete document, facts, and applicable law.