Overadvance

(redirected from Overadvances)

Overadvance

A short-term loan that a company takes out in order to buy more material for its inventory immediately before a period of increased sales. A company uses an overadvance to finance its expected increase in sales.
References in periodicals archive ?
28, 2011 /PRNewswire/ -- Due to tight credit markets, high vehicle prices, overadvances, or poor consumer credit circumstances, SmartValue, LLC presents these new programs progressively allowing Dealers to offer a cost-effective product, allowing sellers to derive additional income and protect their customers from unexpected repair bills.
Indeed, in the middle of August, Salton received an amendment to its senior credit facility that provided it with additional borrowing capacity, extended the date for the termination of the facility and extended the date on which the company has to repay its outstanding overadvances on the facility.
During the moratorium, the Company will continue to be obligated for interest at the default rate under the facility, except for interest on overadvances that accrue at the bank's prime rate plus 8% per annum, in addition to forbearance fees of $450,000 payable upon termination of the moratorium.
Also, factors advance funds to their clients prior to maturity of the receivables and also make seasonal overadvances.
50% on special overadvances, and (ii) under the term loan credit facility, the new interest rate will be, at the company's option, ABR plus 11.
Levy reported that the Company established covenants and the level of allowable overadvances with its lenders, through an amendment to the Credit Agreement dated March 26, 2004, to support its 2004 business plan.
The amendment provides the company with additional borrowing capacity, extends the termination date of the facility to December 31, 2008 and, subject to certain conditions, extends the date on which the Company must repay the outstanding overadvances under the facility to November 10, 2007.
In this regard, we have entered into an interim amendment to our senior credit facility which extends the repayment date on all of our outstanding overadvances to August 6, 2007, while we are actively engaged in discussions with our senior lender to secure a further extension and additional support.
The ratings downgrade follows AmeriTruck's announcement that it has failed to pay certain overadvances that were due to its senior secured revolving credit lender.
95 million of overadvances from April 16, 2007 through April 20, 2007 and up to approximately $4.
In connection with the amendment of the revolving credit facility, Foothill has separately agreed to permit overadvances in excess of the current defined borrowing base of up to $4 million through March 20, 1995, stepping down to $2 million through April 20, 1995, which advances would be available to be utilized by the Company to support additional letter of credit issuances.