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What is an 'Advance Payment'. An advance payment is a type of payment that is made ahead of its normal schedule, such as paying for a good or service before you actually receive the good or service.
A pre-order is an order placed for an item which has not yet been released. The idea for pre-orders came when people found it hard to get popular items in stores due to their popularity. Companies then had the idea to allow customers to reserve their own personal copy, before the release, which has been a huge success.