bank discount
- noun
- /bæŋk dɪsˈkɑːnt/
- Specialized
:
descuento bancario
- The bank discount is subtracted before the borrower receives the loan proceeds.
Examples
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Companies sometimes sell promissory notes at a bank discount to raise quick capital.
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She calculated the bank discount to determine the net amount required for the project.
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The bank discount can significantly reduce your loan amount.
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Many borrowers are unaware of the bank discount applied to their loans.
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The bank discount is subtracted before the borrower receives the loan proceeds.
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Companies sometimes sell promissory notes at a bank discount to raise quick capital.
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Many borrowers are unaware of the bank discount applied to their loans.
Synonyms
16
6.4
Money taken from a loan before you receive it
How Much
- Specialized
- Specialized
16
6.4
Surface Forms
Morphology
The meaning is directly compositional: combining 'bank' (financial institution) with 'discount' (a deduction or interest deducted in advance) yields a reduction/interest amount associated with bank lending or bill purchase. This follows a regular noun+noun modifier pattern and has transparent equivalents in other languages (e.g. Spanish 'descuento bancario'), so a B1 learner who knows the two words can reasonably infer the MWE's general meaning even if some technical details remain.
Etymology
The term bank discount comes from the idea that the bank discounts or takes off some money before handing out a loan. Imagine a banker cutting a slice off a pile of cash so the borrower gets less, and that's why it means the amount of 'interest' 'deducted in advance' from a loan or payment.