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Business Terminology
CREDIT NOTE:
DEBIT NOTE:
A direct debit or direct withdrawal is an instruction that a bank account holder gives to his
or her bank to collect an amount directly from another account. It is similar to a direct
deposit but initiated by the beneficiary.
A note indicating an amount owed by a person or company. Serves the same function as an
invoice.
Form or letter issued by a seller to advise the amount owed by the buyer. An invoice is a
type of debit note. Also called debit memo.