Legal Definition of Advance payment: A payment made before it is due; a payment made early in anticipation of a future debt | Are you a business owner looking to improve cash flow and manage risks? Discover the legal definition of advance payment and how it can benefit your operations. Learn about the importance of advance payments in cash flow management, risk mitigation, client commitment, and financial planning. Find out how contractors, retailers, and independent professionals use advance payments to their advantage. Navigate financial transactions effectively by understanding advance payments and incorporating them into your business practices