👉 The term "prefinance" is a concept in finance that refers to the process of financing an initial investment before it is fully invested. This involves borrowing money from investors or banks, often at lower interest rates than traditional loans, and using this capital to invest in other assets such as real estate or stocks. In the context of prefinance, "investing" typically means investing the borrowed funds into a portfolio of securities or other assets that are expected to grow in value over time. This is known