How Do You Spell ANTICIPATORY CREDIT?

Pronunciation: [antˈɪsɪpətəɹˌi kɹˈɛdɪt] (IPA)

The spelling of "anticipatory credit" can be explained using the International Phonetic Alphabet (IPA): /ænˈtɪsɪpeɪtəri kredɪt/. The word "anticipatory" derives from the Latin word "anticipatus," which means to anticipate or act beforehand. The 'c' in "anticipatory" is pronounced as /s/ due to its connection with the second syllable. The stress is on the second syllable, which is why it is spelled as "ticipatory" instead of "cipatory." When combined with "credit," the word refers to a financial service where a bank extends credit to a customer before payment is due.

ANTICIPATORY CREDIT Meaning and Definition

1. Anticipatory credit refers to a financial arrangement where a lender provides credit or a loan to a borrower based on an expected future event or income stream. This type of credit is often granted when the borrower has a likely upcoming source of funds but requires immediate access to the money. The lender extends credit to the borrower before they receive the actual funds, giving them the ability to use the money in advance.

   The concept of anticipatory credit commonly arises in business or personal finance scenarios. For example, a business may need to make a large purchase but is waiting for payment from a customer. In this case, the business can obtain anticipatory credit from a lender, who provides the necessary funds before receiving payment from the customer.

   This type of credit is typically contingent upon the borrower's ability to repay the amount borrowed once the expected funds materialize. The borrower may provide evidence or documentation of the anticipated future funds to secure the anticipatory credit. Additionally, the terms and conditions of the anticipatory credit, such as interest rates and repayment schedule, will vary depending on the lender's policies.

   Overall, anticipatory credit allows borrowers to bridge the timing gap between anticipated income or funds and their immediate financial needs, providing them with flexibility and liquidity.

Etymology of ANTICIPATORY CREDIT

The etymology of the term "anticipatory credit" can be traced back to the combination of the words "anticipatory" and "credit".

The word "anticipatory" is derived from the Latin word "anticipare", which means "taking before", "acting in advance", or "prejudging". It stems from the prefix "anti-" (meaning "before" or "against") and "capere" (meaning "to take"). In English, "anticipatory" refers to something that is done or experienced in advance or in anticipation of something else.

The word "credit" originates from the Latin word "creditum", which means "loan", "trust", or "confidence". It is related to the verb "credere", meaning "to believe" or "to trust".