Seasonal Credit

AAA

DEFINITION of 'Seasonal Credit'

Any type of credit arrangement that permits corporate borrowers to consistently pay their overhead and other expenses despite seasonal components of revenue generation. Seasonal credit is usually presented as a line of credit and then becomes classified as revolving credit.

Seasonal credit can also refer to a type of credit offered by the Federal Reserve discount window that can last for up to 90 days.

INVESTOPEDIA EXPLAINS 'Seasonal Credit'

Seasonal credit is offered to firms that experience seasonal swings in their cash flow. This allows them to continue operating smoothly during months when there may be little or no income.

RELATED TERMS
  1. Line Of Credit - LOC

    An arrangement between a financial institution, usually a bank, ...
  2. Revolving Credit

    A line of credit where the customer pays a commitment fee and ...
  3. Discount Window

    Credit facilities in which financial institutions go to borrow ...
  4. Credit

    1. A contractual agreement in which a borrower receives something ...
  5. Debit

    An accounting entry that results in either an increase in assets ...
  6. Readvanceable Mortgage

    A mortgage feature that allows the borrower to re-borrow the ...
Related Articles
  1. 8 Tips To Help You Control Holiday Spending
    Budgeting

    8 Tips To Help You Control Holiday Spending

  2. Payday Loans Don't Pay
    Options & Futures

    Payday Loans Don't Pay

  3. Different Needs, Different Loans
    Options & Futures

    Different Needs, Different Loans

  4. Leveraging Leverage For Bigger Profits
    Home & Auto

    Leveraging Leverage For Bigger Profits

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center