Clean up period in Sxw

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How to Clean up period in Sxw

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How long is a typical clean down period?

During each calendar year, there shall be a period of fifteen (15) consecutive days (the CLEAN DOWN PERIOD) during which (a) there are no Loans outstanding under the Working Capital/Distribution Subfacility, and (b) no Loans will be made under the Working Capital/Distribution Subfacility.

What is cleanup requirement?

A cleanup requirement is a condition imposed by some lenders to prove a borrower isnt reliant on permanent financing. It requires the borrower to temporarily pay down the balance on a revolving loan or line of credit to $0.

What is a clean down clause?

A provision applicable to a working capital or overdraft facility to ensure that the borrower is not using that facility as long-term debt.

What is the 30 day out of debt period?

Many banks will require that as a condition of the line of credit approval that you agree, (in writing) to pay your line of credit balance to zero for 30 consecutive days during the 12 month term of the line. After this 30 day period is up you can borrow up to the line limit the next month if you like.

What is a clean down requirement?

What does Clean-down mean? A clean down provision obliges the borrower to ensure that there are no revolving credit facility loans outstanding for a period of a few days once or twice a year.

What does clean down mean?

phrasal verb. clean something down. to clean something carefully and completely. All the equipment should be cleaned down regularly.

What is a clean up period?

Related Content. In acquisition finance, the period in which the borrower can remedy certain events relating to the group of companies acquired which bdocHub the terms of the facility agreement documenting the facilities used to fund the acquisition.

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