discount interest; pay discount interest
Meanings
2 senses · 7 examplesverb
to pay interest when discounting a note or bill; to discount
formalRefers to the act of paying interest when converting time drafts or bills of exchange into cash before their maturity date. Commonly used in banking and corporate finance.
The company discounted these bills at a loss of interest to obtain working capital.
The bank agreed to absorb the discount interest for premium clients.
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The government subsidized the interest on this loan, reducing the financing costs for enterprises.
noun
discount interest; interest paid when discounting a bill
formalRefers to the monetary amount of interest lost when cashing a time draft or bill before its maturity date. Often used in financial accounting and banking contexts.
The discount interest is borne by the buyer.
What is the current discount interest rate?
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We need to calculate the discount interest cost to see if it is worth discounting early.
The government provided discount interest subsidies to encourage enterprises to expand production.