revolving credit agreement

(noun)

a type of debt that does not have a fixed number of payments

Related Terms

Examples of revolving credit agreement in the following topics:

  • Credit Operations

    • Companies frequently offer credit to their customers as part of the terms of a purchase agreement.
    • A line of credit may take several forms, such as overdraft protection, demand loan, special purpose, export packing credit, term loan, discounting, purchase of commercial bills, traditional revolving credit card account, etc.
    • A revolving credit line provides a borrower with a maximum aggregate amount of capital, available over a specified period of time.
    • However, unlike a term loan, revolving debt allows the borrower to draw down, repa,y and re-draw credit amounts advanced to her by the available capital during the term of the debt.
    • Repayment of revolving credit is achieved either by scheduled payments on the total amount of the debt over time, or by all outstanding loans being repaid on the date of termination.

  • Short-Term Loans

    • A credit card is a payment card issued to users as a method of payment.
    • The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user.
    • For smaller businesses, financing via credit card is an easy and viable option.
    • These loans are also sometimes referred to as "cash advances," though that term can also refer to cash provided against a credit card or other prearranged line of credit.
    • The core of the money market consists of inter bank lending (banks borrowing and lending to each other using commercial paper), repurchase agreements, and similar short-term financial instruments.

  • Credit Cards

    • The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user.
    • Credit cards are issued by an issuer like a bank or credit union after an account has been approved by the credit provider, after which cardholders can use it to make purchases at merchants accepting that card.
    • As all credit cards charge fees and interest, some customers become so indebted to their credit card provider that they are driven to bankruptcy.
    • Merchants are charged several fees for accepting credit cards.
    • Merchants may charge users a "credit card supplement," either a fixed amount or a percentage, for payment by credit card.

  • Credit Ratings

    • Credit ratings are determined by credit ratings agencies.
    • First, the Basel II agreement requires banks to report their one-year probability if they applied internal ratings-based approach for capital requirements.
    • A credit score is primarily based on credit report information, typically from one of the three major credit bureaus: Experian, TransUnion, and Equifax.
    • Income is not considered by the major credit bureaus when calculating a credit score.
    • The credit bureaus all have their own credit scores: Equifax's ScorePower, Experian's PLUS score, and TransUnion's credit score, and each also sells the VantageScore credit score.

  • Jay's Treaty

    • It was an agreement that is credited with averting war, resolving unaddressed issues from the Treaty of Paris in 1783, and facilitating ten years of relatively peaceful trade between the United States and Britain in the midst of the French Revolutionary Wars .
    • John Jay was sent to Britain—with instructions from Hamilton—to secure compensation for captured American ships; to ensure the British leave the northwest outposts they still occupied (despite the terms of the 1783 Treaty of Paris, which recognized this as American territory); and to gain an agreement for American trade in the West Indies.
    • Although the two nations reached an agreement, an accord between the Federalists and Democrat-Republicans proved difficult to attain.
    • Indeed, the controversial aspects of the treaty revolved not around the give-and-take terms that were to be expected from any diplomatic compromises, but rather around the outbreak of political hostilities between Federalists and Democrat-Republicans.
    • Their polarized views of America's foreign presence proscribed any agreement on international conduct during this tumultuous period.

  • Getting started

    • The second approach to the creation of a network is more personal and involves the introduction of two or more like-minded businesspeople at a social gathering or a personal agreement between long-term acquaintances.
    • Either way, the ingredients for a successful cooperating network revolve around mutual interests (and trust) combined with a can-do attitude.

  • Lobbying Scandals and the Reforms of 2007

    • Details of the bill include closing the revolving door , prohibiting senators from gaining undue lobbying access by increasing the "cooling off" period before they can lobby Congress from one to two years, prohibiting cabinet secretaries and other senior executive personnel from lobbying the department or agency in which they worked for two years after they leave their position, and prohibiting senior Senate staff and officers from lobbying contacts with the entire Senate for one year, instead of just their former employing office.
    • Requires that executive and legislative branch employees who leave government positions and seek to lobby on behalf of Native American tribes face the same revolving door provisions as others.
    • Prohibits members from engaging in any agreements or negotiations about future employment until a successor has been selected unless the member files a statement with the Committee on Standards of Official Conduct; and requires that members recuse themselves from any matter in which there is a conflict of interest or appearance of a conflict.
    • Requires senior staff to notify the Committee on Standards of Official Conduct within three days if they engage in negotiations or agreements for future employment or compensation.
    • As the former Under Secretary of Agriculture for Food, Nutrition, and Consumer Services and lobbyist for the Podesta Group in 2009, Ellen Haas represents the revolving door phenomenon that the 2007 lobbying reforms sought to address.

  • Striking Agreements to Avoid Bankruptcy

    • This is a common course of action for individuals owing large sums on multiple credit cards .
    • Debt consolidation is one option for individuals owing large sums on multiple credit cards.

  • The Five Cs of Credit

    • Capacity to repay, capital, collateral, conditions, and character, are referred to as the "Five Cs of Credit".
    • Payment history on existing credit relationships—personal or commercial—is considered an indicator of future payment performance.
    • Giving a lender collateral means that you pledge an asset you own, such as your home, to the lender with the agreement that it will become the repayment source if you can't repay the loan.
    • An additional, often cited "C" of credit, is credit history, which looks at the debtor's past uses of credit.
    • Evidence of responsible use and repayment of credit is a good sign to lenders.

  • Debate over the Presidency and the Judiciary

    • During the Constitutional Convention, the most contentious disputes revolved around the composition of the Presidency and the Judiciary.
    • During the Constitutional Convention, the most contentious disputes revolved around the composition and election of the Senate, how "proportional representation" was to be defined, whether to divide the executive power between three people or invest the power into a single president, how to elect the president, how long his term was to be and whether he could stand for reelection, what offenses should be impeachable, the nature of a fugitive slave clause, whether to allow the abolition of the slave trade, and whether judges should be chosen by the legislature or executive.
    • The Committee of Detail was a committee established by the United States Constitutional Convention on June 23, 1787 to put down a draft text reflecting the agreements made by the convention up to that point, including the Virginia Plan's 15 resolutions.
    • During the Constitutional Convention, some the most contentious disputes revolved around the composition of the Presidency and the Judiciary.