What is an advance in financial terms?

An advance payment, or simply an advance, is the part of a contractually due sum that is paid or received in advance for goods or services, while the balance included in the invoice will only follow the delivery. Advanced payments are recorded as assets on the balance sheet.

Is Advance Financial a payday loan?

Payday loans with a monthly payment plan are predatory and yet immensely popular. Advance Financial offers an open-ended line of credit wherein the repayment due dates are aligned with your payday.

Where is Advance Financial located?

Nashville, Tennessee
Founded in 1996, Advance Financial is a fintech company based in Nashville, Tennessee.

Are advance payments an asset?

Advance payments are amounts paid before a good or service is actually received. Advance payments are recorded as assets on a company’s balance sheet. As these assets are used, they are expended and recorded on the income statement for the period in which they are incurred.

What is the risk of advance payment?

Cash in advance payment methods are used to eliminate credit risk, or the risk of non-payment, for the seller. In general, the structure of cash in advance transaction fully benefits the seller and poses risks for the buyer.

Can you go to jail for not paying a payday loan in Tennessee?

No, you cannot be arrested for defaulting on a payday loan. However, if you are sued or a court judgment has been entered against you and you ignore a court order to appear, a judge may issue a warrant for your arrest. You should never ignore a court order.

How are advance payments accounted for?

Whenever an advance payment is made, the accounting entry is expressed as a debit to the asset Cash for the amount received. A credit also needs to be made to the liability account – something along the lines of Advance Payments, Unearned Revenue, or Customer Advances.

What is purpose of advance payment?

Advance payment is a type of payment made ahead of its normal schedule such as paying for a good or service before you actually receive it. Advance payments are sometimes required by sellers as protection against nonpayment, or to cover the seller’s out-of-pocket costs for supplying the service or product.

How can I protect my advance payment?


  1. Ask the supplier to provide you with some references FROM YOUR INDUSTRY.
  2. Check the company with the local Chamber of Commerce.
  3. Check the company on the internet.
  4. Check your potential supplier using our “company check” services.