What is Swingline borrowing?

A swingline loan is a short-term loan made by financial institutions that provides businesses with access to funds to cover debt commitments. … However, swingline loans often carry higher interest rates than traditional lines of credit, and the funds are limited to covering debt obligations.

>> Click to

Besides, how do delayed draw term loans work?

A delayed draw term loan (DDTL) is a special feature in a term loan that lets a borrower withdraw predefined amounts of a total pre-approved loan amount. The withdrawal periods—such as every three, six, or nine months—are also determined in advance.

In this regard, how does a Swingline work? A swingline facility is a sub-limit of a syndicated revolving credit loan whereby a lender makes a short term (operating not more than five days) loan, in smaller amounts, on shorter notice, and with a higher interest rate than is otherwise available for revolving credit loans.

Moreover, what is a credit facility sublimit?

Sublimit Facility means a line of credit extended to the Borrower in the form of Sublimit Loans not to exceed with respect to each Eligible Sublimit Loan Note, the Sublimit Formula, provided that the maximum that will be advanced against all Eligible Sublimit Loan Notes at any time will not exceed $25,000,000.

What is a rollover loan?

A loan or advance under a revolving facility that is drawn by a borrower to repay a loan or advance under that facility which is maturing. The new loan will only be a rollover loan if it is: Drawn on the same day that the maturing loan is due to be repaid. In an amount equal to or less than the maturing loan.

What is a sublimit loan?

Loan Sublimit means the Total Commitment, less the amount of the Letter of Credit Outstandings.

What is a Swingline stapler?

Swingline is a division of ACCO Brands Corporation that specializes in manufacturing staplers and hole punches. The company was formerly located in Long Island City, Queens, New York, United States, but the plant was moved to Nogales, Mexico, in 1999.

What is a Swingline used for?

Swingline loans are available in generous amounts and are typically used for debt obligations, such as settling outstanding loans. Swingline loans can be used for working capital, new facility expenses, and other business purposes, too.

What is a syndicated bank loan?

A syndicated loan is a loan extended by a group of financial institutions (a loan syndicate) to a single borrower. Syndicates often include both banks and non-bank financial institutions, such as collateralized loan obligation structures (CLOs), insurance companies, pension funds, or mutual funds.

What is an accordion loan?

Related Content. Also known as an accordion feature. A feature of some loan agreements that allows the borrower to add a new term loan, tranche, or increase the revolving credit loan commitments under an existing loan facility up to a specified amount under certain terms and conditions.

What is bank credit line?

A line of credit is a flexible loan from a bank or financial institution. … As with a loan, a line of credit will charge interest as soon as money is borrowed, and borrowers must be approved by the bank, with such approval a byproduct of the borrower’s credit rating and/or relationship with the bank.

What is loan against invoice?

Invoice financing is a way for businesses to borrow money against the amounts due from customers. Invoice financing helps businesses improve cash flow, pay employees and suppliers, and reinvest in operations and growth earlier than they could if they had to wait until their customers paid their balances in full.

What is the collateral in a blanket mortgage?

A blanket mortgage is a single mortgage that covers two or more pieces of real estate. The real estate is held together as collateral, but the individual properties may be sold without retiring the entire mortgage. Blanket mortgages are commonly used by developers, real estate investors, and flippers.

What is undrawn revolving credit?

Undrawn Commitment (Banking & Finance Glossary) Refers to the loans that the Lender has agreed to be made available to the Borrower under a Revolving Credit Facility or a Delayed Draw Term Facility that the Borrower has either not drawn, or has drawn and repaid.

Why would a company choose to do a fronting loan?

The advantage of using fronting loans as a way to lend money, rather than the parent lending the money directly to the subsidiary, is that the parent can gain some tax benefits and bypass local laws that restrict the amount of funds that can be transferred abroad.

Leave a Comment