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.


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.

  1. Line Of Credit - LOC

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

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

    Credit facilities in which financial institutions go to borrow funds from the ...
  4. Credit

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

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

    A mortgage feature that allows the borrower to re-borrow the principal amount ...
  7. Committed Credit Line

    A monetary spending loan balance offered by a financial institution that cannot ...
  8. Ineligible Accounts

    Money that a company counts as an asset, but that a lender will not count as ...
  9. Revolving Loan Facility

    A financial institution that allows the borrower to obtain a business or personal ...
  10. Inventory Financing

    A line of credit or short-term loan made to a company so it can purchase products ...
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