Explore commonly used personal finance terms.
An advance fee is a payment required before a service is provided, common in various industries such as legal services, consulting, and loans. Advance fees secure the service provider’s commitment and may be refundable or non-refundable based on the agreement. In finance, they are sometimes associated with scams, so verifying the provider’s legitimacy is essential. Understanding the terms and necessity of advance fees helps consumers avoid fraudulent services while establishing clarity in service-based transactions.
