Glossary
Welcome to SFNet's Secured Finance Glossary of industry terms. Currently the SFNet Glossary has over 400 industry terms and definitions. You can search specific terms in the search tool above, or use the alpha tool below and progress on the paginations.
Opportunity Cost 
This refers to a benefit that a person could have received, but gave up, to take another course of action.
Orderly Liquidation Value
An estimate of the gross amount that a tangible asset would get in an auction style liquidation with the seller needing to sell the asset on an as-is, where is basis.
Over Eligible Days
The period of time at which an invoice become ineligible for advance purposes. Asset based lender typically limit eligibility on invoices to a specific amount of days.
Over-advance
The advanced portion of a revolving credit facility that exceeds availability calculated by the borrowing base formula established.
Overdraft
A deficit in an account caused by drawing more money than the account holds.
Overformula Advance
An agreement where the Lender advances funds in excess of caps and there is no collateral value to cover the advances. The advances will stay outstanding and amortize at a pre-determined amount of time.
Overline Advance
Where the Lender advances funds in excess of pre-established caps for receivables and inventory, but there is collateral value above the caps to cover the loan position.
PACA (Perishable Agricultural Commodities Act)
Designed to promote fair trading practices in the marketing of fresh and frozen fruits and vegetables sold through interstate and foreign commerce. The Perishable Agricultural Commodities Act (PACA) prohibits unfair and fraudulent practices and provides ways to enforcing contracts. PACA requires anyone buying or selling commercial quantities of fruit and vegetables and some products made from these perishable items to be licensed and to behave with a code of conduct that is enforceable.