What is Revolving Line of Credit (RLOC)?
A revolving line of credit is an agreement that permits an account holder to borrow money repeatedly up to a set dollar limit while repaying a portion of the current balance due in regular payments. Each payment, minus the interest and fees charged, replenishes the amount available to the account holder.
OTHER TERMS BEGINNING WITH "R"
- Recourse
Recourse is when a borrower agrees to pledge their own assets against funding from a bank or other lender in case the borrower is unable to meet the debt obligations. Recourse factoring is when the client will repay or replace…
- Rehypothecation
Rehypothecation is the practice by banks and brokers of using, for their own purposes, assets that have been posted as collateral by their clients. Clients who permit rehypothecation of their collateral may be compensated either through a lower cost of…
- Request for Proposal (RFP)
Request For Proposal (RFP) is a type of bidding solicitation in which a company or organization announces that funding is available for a particular project or program, and companies can place bids for the project's completion. It outlines the bidding…
- Retention (Contractors)
Retention is the percentage of payments for a job in a process that is held back to ensure adequate performance. Retention is considered an ineligible A/R because it takes a long time to collect and it is common for disputes…
- Reverse Factoring or Supply Chain Financing
Reverse Factoring or Supply Chain Financing is when a bank or finance company commits to pay a company’s invoices to the suppliers at an accelerated rate in exchange for a discount. It is unlike traditional invoice factoring, where a supplier…
