Annual Clean Up

A requirement for a borrower to completely repay a revolving line of credit at least once per year. For example, a lender may require an annual clean up for a company that uses a business line of credit to make payroll in its slow months. The annual clean up proves to the lender that the borrower is not overly dependent on the credit line and can generate its own revenue. It is also called a clean up requirement.

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.