Understanding what is meant by the term "discount"

Suppose A accepts a note from B, to whom he has sold good on credit. A needs cash. He
goes to his bank and arranges for a advance by the bank on B's note. A endorses the
note and A well as B are then responsible for the payment of the note when due. The
bank then makes available to A the face amount of the note less interest. This process is
called "discounting"; the rate of interest deducted is the "discount rate."

Ettinger and Golieb, Credits and Collections (3d ed. 1949) page 7.