What is the difference between an advance and a bank overdraft?

Both overdraft and cash credit are really forms of borrowing. The institution allows you to withdraw funds that you do not have a demand claim to, usually in small amounts. The primary differences between these two forms of borrowing is how they are secured and whether the money is lent out of a separate account.

Loan is released in one shot or in small number of tranches. The repayments are made in installments or in one shot. In overdraft a limit is fixed and one could transact through debits and credits up to the limit. Ideally for capital expenditure loan are availed and for working capital overdraft is suitable.

Advance payment is a liability which is made by any customer thorugh the availment of the advance payment. just like advance salary or advance payment taking from his empolyeer or any banks.

Bank over draft is concedring assets from any financial institution and banks bank over drafts  call by the name of credit facilitly which created by the banks. 

An advance is a payment made in advance of the performance of any associated service or product . If the advance is made by a customer, it is initially recorded by the recipient as a liability, . If the advance is made to a supplier, the payer recording  as an asset

Bank Overdraft is a Kind of Credit Facility, This facility is allowing the account holder to withdrawing money even if the account has no funds in it.