An advance note is a written document that outlines the terms and conditions of a financial transaction. It is a type of promissory note that is used to secure a loan or other financial obligation. Advance notes are commonly used in business and commercial transactions, as well as in personal finance.
Definitions
An advance note is a legal document that outlines the terms and conditions of a loan or other financial obligation. It is a written agreement between the borrower and the lender that specifies the amount of the loan, the interest rate, and the repayment terms.
Origin
The origin of the term “advance note” can be traced back to the early days of commerce and trade. In the past, merchants and traders would often extend credit to their customers, allowing them to purchase goods and services on credit. To secure these transactions, they would often use promissory notes, which were written agreements that outlined the terms of the credit arrangement.
Meaning in different dictionaries
According to the Merriam-Webster dictionary, an advance note is “a note given as security for a loan or other obligation.” The Oxford English Dictionary defines it as “a promissory note given in advance of a loan or other financial obligation.”
Associations
Advance notes are commonly associated with commercial and business transactions. They are often used by businesses to secure loans or lines of credit from banks and other financial institutions. They are also used in personal finance, such as when an individual takes out a loan to purchase a car or home.
Synonyms
Synonyms for advance note include promissory note, IOU, bond, and debenture.
Antonyms
Antonyms for advance note include cash, payment, and settlement.
The same root words
The root words for advance note are “advance” and “note.” Advance means to move forward or make progress, while note refers to a written or printed record of something.
Example Sentences
Here are some example sentences that use the term advance note:
- The bank required him to sign an advance note before they would approve his loan.
- The company issued an advance note to secure a line of credit from their bank.
- She gave him an advance note to show that she was serious about repaying the loan.
- The lender required him to provide collateral in addition to the advance note.
- The advance note specified that the loan had to be repaid within six months.