Investopedia

Continue to Site »

Annual Clean-Up

Filed Under »
Dictionary Says

Definition of 'Annual Clean-Up'

A banking practice that requires a borrower to pay off all balances of any renewable lines of credit and keep them at zero for 30 to 60 days or so. Although the annual clean up is a long-time tradition, it's becoming less common nowadays. Clean-ups aren't usually required on secured credit lines.

Also known as the clean-up requirement.
Investopedia Says

Investopedia explains 'Annual Clean-Up'

The annual clean up usually takes place when the customer is flush with cash. For instance, after a peak sales period when receivables have mostly been collected and cash needs for replenishing inventory are low. The clean-up shows that credit lines are being used only during periods of peak cash requirements and are not needed for the normal financing of the business.

Articles Of Interest

  1.

    A Guide To Debt Settlement

    Find out how you can negotiate your way to a lower debt load by paying up front.

  2. How To Establish A Credit History

    Can't get a credit card without a credit history, and can't get a history without a card? Break the Catch-22.

  3. Different Needs, Different Loans

    Find out what options are available when it comes to borrowing money.

  4. Why Making Minimum Payments Gets You Nowhere

    Getting out of debt can be difficult, but paying off a minimum balance each month only makes things worse.

  5. Canada: A New Frontier For Real Estate Investors

    This property market is easy to access and provides profitable opportunities.

  6. Additional Streams Of Income For Seniors

    Find out how a reverse mortgage can work in your favor during retirement.

  7. How To Get A Credit Card Despite Bad Credit

    Prepaid credit cards and secured credit cards are both excellent options for getting a credit card despite having a poor credit rating.

  8. How HELOCs Can Hurt You

    A home equity line of credit is a convenient way to borrow money. But, there are things to be cautious about before you get into trouble.

  9. Investing In Credit Card Companies

    This investment requires keeping an eye on consumer indexes and the overall health of the economy.

  10. Is Taking Out A HELOC Right For You?

    Assuming you have enough equity to qualify, taking out a HELOC might be a good financial move.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  2. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  3. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  4. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  5. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.

  6. Lease To Own

    An arrangement where an individual enters into a lease agreement with an owner with the inclusion of a clause that typically gives the individual the right, but not the obligation, to purchase the item leased at a predefined price and time.
Trading Center