Cash advance and prepayment are often and unduly used one for the other while they correspond to different notions and their representation in the accounts is not the same.
– DEFINITION:
Cash advance: a cash advance is a transfer of money without any contractual obligation in exchange of that payment. It is not a donation and the advanced cash is a debt for the receiver vis-a-vis the payer but unlike a loan, there is no predetermined schedule for the repayment or pre-established consideration for this payment.
Prepayment:
a prepayment is the anticipated settlement of the contractual price for a good or a service.
Kite's world 