Overadvance

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 ?
Oil and natural gas company Mid-Con Energy Partners LP (NasdaqGS:MCEP) said on Tuesday that it has completed its new spring 2016 borrowing base redetermination of a USD53m permitted overadvance and a USD110m conforming tranche with immediate effect.
Wall Street was willing to provide warehouse and overadvance lines to new entrants such as Irvine, California-based BNC Mortgage, Inc.
The proceeds from the sale will allow us to significantly reduce our senior debt and eliminate the overadvance, and will facilitate a refinancing of the secured lenders.