ADVANCE MONEY Meaning and
Definition
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Advance money refers to a monetary sum that is provided to an individual or entity in anticipation of, or as partial payment for, a future service, purchase, or financial transaction. It is a prepayment or upfront payment made before the actual delivery of goods or completion of services.
Typically, advance money is requested by the recipient as a means to cover immediate expenses or to secure their commitment to carry out a particular task. This advance is often provided by the person or organization requiring the services or goods, and it may serve as a form of assurance that the recipient will fulfill their obligations.
Advance money is commonly seen in various contexts. For instance, customers may provide an advance to suppliers to ensure timely delivery of goods. In the context of employment, an employer may offer employees an advance on their wages to address any financial needs before the next scheduled payday. In other cases, it can be referred to as a loan or a cash advance, typically accompanied by an agreement detailing repayment terms and any applicable interest rates.
It is important to note that advance money is not considered a gift but rather a temporary disbursement that is expected to be reconciled or deducted from future payments owed.
Etymology of ADVANCE MONEY
The word "advance money" consists of two parts: "advance" and "money".
The term "advance" originated from the Latin verb "advancare", meaning "to move forward" or "to raise". It entered the English language in the late 15th century with the meaning of "to move forward or onward". Over time, it also developed the sense of making progress or taking action before others.
The word "money" comes from the Latin word "moneta", which referred to a mint or coin. It later evolved to mean any medium of exchange used in trade or commerce.
When combined, "advance money" refers to a sum of money given or paid in advance, ahead of time, or before the completion of a task or obligation. It typically implies a loan or payment made to someone before they have earned or completed the necessary work.
