Definitions for "Overadvance"
Keywords:  inventory, prior, peak, sales, expected
A loan in advance of sales that enables a company's management to build its inventory prior to peak sales periods.
When a company obtains a loan in order to increase their inventory prior to an expected increase in sales volume.
An "overadvance" is another term for a "debit balance," where a factor has advanced funds to a client that exceed the accounts receivable balance assigned to the factor.