Advances (noun):
1. Progress or improvement made in a particular field, especially in technology, science, or knowledge.
Example: The recent advances in medicine have greatly improved the chances of survival for patients with certain diseases.
2. Forward movement or development, often in a social or cultural context.
Example: The advances in women’s rights over the past century have led to greater gender equality in many societies.
3. An offer or proposal, typically of a romantic or sexual nature.
Example: He made several advances towards her, but she politely declined his invitations.
4. Funds or financial assistance provided by a person or organisation, usually with the expectation of repayment or interest.
Example: The bank granted him an advance on his salary to help cover his unexpected expenses.
5. A military offensive or attack, aimed at gaining ground or achieving a strategic objective.
Example: The army launched a series of advances to push back the enemy forces and regain control of the territory.
Advances refer to funds or resources provided by one party to another, typically in the context of a loan or credit arrangement. These funds are given in anticipation of future repayment or as a means to support ongoing operations or projects. Advances can be made by individuals, businesses, or financial institutions, and are governed by legal agreements that outline the terms and conditions of the advance, including interest rates, repayment schedules, and any collateral or security required. In case of default, the lender may have the right to take legal action to recover the advanced funds. Advances are commonly used in various industries, such as banking, finance, and real estate, to facilitate economic activities and provide financial support.
Q: What are advances?
A: Advances refer to funds provided by a lender to a borrower before the borrower receives the actual income or payment.
Q: What types of advances are there?
A: There are various types of advances, including payday advances, merchant cash advances, invoice advances, and royalty advances.
Q: How do payday advances work?
A: Payday advances are short-term loans that are typically repaid on the borrower’s next payday. They are usually small amounts and have high interest rates.
Q: What is a merchant cash advance?
A: A merchant cash advance is a lump sum provided to a business in exchange for a percentage of its future credit card sales. It is often used by businesses that need immediate cash flow.
Q: How does an invoice advance work?
A: An invoice advance, also known as invoice factoring, involves selling unpaid invoices to a lender at a discounted rate. The lender then collects the full payment from the customer when it is due.
Q: What is a royalty advance?
A: A royalty advance is a payment made to an artist, author, or musician based on future royalties from their work. It allows them to receive money upfront instead of waiting for royalty payments over time.
Q: How do advances differ from loans?
A: Advances are similar to loans but have some key differences. Advances are often based on future income or payments, while loans are typically based on creditworthiness and collateral. Advances also tend to have higher interest rates and shorter repayment terms.
Q: Who can qualify for an advance?
A: Eligibility for advances varies depending on the type of advance. Payday advances usually require proof of income and an active bank account. Merchant cash advances may require a certain level of credit card sales. Invoice advances are available to businesses with outstanding invoices. Royalty advances are typically offered to established artists or authors.
Q: Are advances a good option for emergency cash needs?
A: Advances can provide quick access to cash, making them suitable for emergency situations. However, due to their high interest rates and short repayment terms, they should be used as a last resort and only if the borrower can afford to repay them promptly.
Q: Can advances affect credit scores?
A: Advances typically do not directly impact credit scores since they are not reported to credit bureaus. However, if a borrower fails to repay an advance and it goes into collections, it can negatively affect their credit score.
Q: Are advances regulated?
A: The regulations
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March 2024.
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