- When a company obtains a loan in order to increase their inventory prior to an expected increase in sales volume.
Essentially, an overadvance is a loan amount that temporarily exceeds a company's accounts receivables.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
overadvance — v., overadvanced, overadvancing, n. * * * … Universalium
overadvance — o ver•ad•vance′ v. vanced, vanc•ing, n … From formal English to slang
overadvance — v., overadvanced, overadvancing, n … Useful english dictionary
Senior stretch loan — A senior stretch loan, or overadvance loan, is a hybrid debt instrument consisting of both asset based loan and cash flow loan. Such loans are suitable for two types of companies:*Companies that have substantial asset base but don t have stable… … Wikipedia