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What is the difference between a deposit and prepayment?
What is the difference between a deposit and prepayment?
Kees Zorge avatar
Written by Kees Zorge
Updated over 4 years ago

A deposit is a remittance you do in advance, your money is frozen on another account and you loose all power of disposition over your money, but you remain the owner of this amount. The purpose of a deposit is to secure an operation. 

A prepayment is simple: you simply pay in advance. Prepayments are amounts paid for in advance of the goods or services being received later on. Any payment made in advance can be considered a prepayment.

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