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A cleanup clause is a contractual provision in a loan agreement which provides that all loans must be repaid within a specified period, after which no further loans will be made available to the debtor for a specified "cleanup" period. It may also refer to revolving line of credit.
Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to installment credit. Credit cards are an example of revolving credit used by consumers. Corporate revolving credit facilities are typically used to provide liquidity for a company's day-to-day operations.
Categorizing loan agreements by type of facility usually results in two primary categories: term loans, which are repaid in set installments over the term, or revolving loans (or overdrafts ) where up to a maximum amount can be withdrawn at any time, and interest is paid from month to month on the drawn amount.
The Credit Agreement replaces an existing credit facility entered into on July 20, 2017, and reflects substantially the same terms and conditions. ... The new revolving credit facility will ...
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The willingness of governments to allow lenders to place debtor-in-possession financing claims ahead of an insolvent company's existing debt varies; US bankruptcy law expressly allows this [8] while French law had long treated the practice as soutien abusif, requiring employees and state interests be paid first even if the end result was liquidation instead of corporate restructuring.
The warehouse lenders in most cases provide the loan for a period of fifteen to sixty days. [3] Warehouse lines of credit are usually priced off 1-month LIBOR plus a spread. [ 4 ] Also, warehouse lenders typically apply a 'haircut' to credit line advances meaning that only 98% - 99% of the face amount of loans are being funded by them; the ...
When rates rise, the total amount of debt you pay on any new debt increases. When interest rates fall, you pay less. Interest rate changes: short-term vs. long-term debt